---
title: "Backblaze's $335 million CoreWeave contract doesn't hit its minimums until mid-2027; stock at $12.69"
description: "A 43% day in June and doubled price targets made Backblaze's $335 million CoreWeave storage deal the small-cap AI trade of the summer. The contract's own terms defer its minimum revenue commitments to around mid-2027, and the stock has since slipped to $12.69 against a $22.83 average analyst target."
publisher: "The Inference"
section: "Infrastructure"
published: 2026-10-11T01:09:41.175Z
modified: 2026-10-11T01:09:41.175Z
canonical: https://theinference.org/article/backblaze-s-335-million-coreweave-contract-doesn-t-hit-its-minimums-until-mid-2027-stock-at-12-69
language: en
keywords: "Backblaze, CoreWeave, Cloud Storage, Neoclouds, Convertibles, Stock Movers"
---

# Backblaze's $335 million CoreWeave contract doesn't hit its minimums until mid-2027; stock at $12.69

> A 43% day in June and doubled price targets made Backblaze's $335 million CoreWeave storage deal the small-cap AI trade of the summer. The contract's own terms defer its minimum revenue commitments to around mid-2027, and the stock has since slipped to $12.69 against a $22.83 average analyst target.

## A storage stock went vertical in June

[Backblaze](https://theinference.org/markets/companies/backblaze) opened up 30% on June 23, 2026, after signing a [five-year, $335 million, multi-exabyte storage agreement with CoreWeave](https://seekingalpha.com/news/4606115-backblaze-blasts-off-after-securing-335m-deal-with-coreweave-to-provide-storage-capacity), the Blackstone- and [Nvidia](https://theinference.org/markets/companies/nvidia)-backed neocloud, its largest contract ever [1][3][4]. The stock closed at $11.66, up 43%, its best day since early May, on retail chatter up nearly 19,000% in a day [2]. William Blair dropped Underperform and called the deal "game-changing"; Citizens went to $14 from $8, Craig Hallum to $16 from $6.50 [2].

## The re-rating ran twice

A second wave followed Q2 results on August 3: [revenue rose 18% to $42.7 million, above guidance](https://finance.yahoo.com/markets/stocks/articles/backblaze-q2-earnings-call-highlights-230348079.html), and the full-year outlook was lifted to $172 million to $174 million [4]. Oppenheimer moved to $25 from $15, B. Riley to $24, Lake Street and Citizens to $21 [5][6]. The average target across seven analysts now sits at $22.83; the shares closed at $12.69 on October 9 [6].

*Chart: **Every refreshed Backblaze target sits above the $12.69 tape; two of five clear the convert's strike** Bar chart of five analysts' Backblaze price targets from $16 to $25, with reference lines at the $12.69 close and the $21.94 conversion price.*

*Price targets set after the June CoreWeave announcement and the August Q2 report. Reference lines mark the 0% convertible's conversion price and the Nasdaq close on October 9, 2026. Sources: Stocktwits, Yahoo Finance, MarketScreener, Business Wire. [2][5][6][8]*

## The contract's clock says mid-2027

Of the $335 million headline, $22 million is warrant value and $313 million entered remaining performance obligations, more than seven quarters of total company revenue at the Q2 rate [4]. The platform piece, roughly 70% of the net contract, reaches its minimum commitment only around mid-2027; the rest is a managed service on hardware [CoreWeave](https://theinference.org/markets/companies/coreweave) owns, where [Backblaze](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001462056) books software and staffing, not hardware margin [4]. The validation was priced in June; the revenue is dated 2027.

## The bill lands before the income statement

The contract rescued a decelerating business: [growth cooled from above 25% through 2024 to about 12% in the two quarters before it](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001462056) [7]. Serving it takes capital spending guided to 55% to 65% of 2026 revenue, adjusted free cash flow neutral only through capital leases, and a temporary gross-margin dip [4]. The funding came in August: [an upsized $175 million convertible, zero coupon, due 2031](https://finance.yahoo.com/markets/stocks/articles/backblaze-announces-pricing-upsized-175-021700817.html), struck at $21.94, with capped calls at $33.76 [8]. The shares closed at $16.88 that day; at $12.69 now, the strike sits 73% above the tape [8][6].

*Chart: **Backblaze's growth cooled to 12% before the CoreWeave deal lifted Q2 to $42.7M** Column chart of Backblaze quarterly revenue from Q3 2024 through Q2 2026, rising from $32.6M to $42.7M.*

*Quarterly revenue as reported in SEC filings, in millions of dollars. The CoreWeave agreement was signed June 23, 2026. Source: Backblaze quarterly figures from its SEC filings, retrieved 10 October 2026. [10]*

## The bulls have the quarter on their side

B2 storage revenue grew 34% in Q2, about 26% excluding the May price increase, and CoreWeave is the fourth major AI-cloud customer, with roughly half a dozen managed-storage talks open [4][9]. A CoreWeave vice president credits Backblaze with [HDD storage "reliable and easy-to-consume at scale"](https://www.sdxcentral.com/news/coreweave-enlists-backblaze-for-massive-cloud-storage-expansion/) [3]. None of that is a second signed contract, and deployment delays or costlier drives would bite first [9].

## The verdict arrives on a schedule

Q3 guidance of $44.4 million to $44.8 million reports in November [4]. The decisive tests come later: a second neocloud signing, and CoreWeave's minimums holding to the mid-2027 ramp. Until then, holders own the build, the zero coupon and the wait.

## Takeaway

The CoreWeave contract rescued a decelerating Backblaze, but its minimums hold to mid-2027 and the bill, capex at 55-65% of revenue and a $175 million zero-coupon convert, lands first; the verdict comes with a second neocloud signing and Q3 results in November.

## Sources

1. [Seeking Alpha News, "Backblaze blasts off after securing $335M deal with CoreWeave to provide storage capacity", 23 June 2026](https://seekingalpha.com/news/4606115-backblaze-blasts-off-after-securing-335m-deal-with-coreweave-to-provide-storage-capacity)
2. [Stocktwits, "BLZE Stock On Track For Its Best Day Since March 2024: 'Game-Changing' CoreWeave Deal Sparks Analyst Upgrades", June 2026](https://stocktwits.com/news-articles/markets/equity/why-backblaze-blze-stock-is-rising-coreweave-deal-analyst-upgrades/cZKyeKfR7f5)
3. [SDxCentral, Ben Wodecki, "CoreWeave enlists Backblaze for massive cloud storage expansion", 25 June 2026](https://www.sdxcentral.com/news/coreweave-enlists-backblaze-for-massive-cloud-storage-expansion/)
4. [MarketBeat via Yahoo Finance, "Backblaze Q2 Earnings Call Highlights", 3 August 2026](https://finance.yahoo.com/markets/stocks/articles/backblaze-q2-earnings-call-highlights-230348079.html)
5. [Yahoo Finance (Stocktwits news team, Rounak Jain), "BLZE Stock Hits A 55-Month High: CEO Says Backblaze Had An 'Amazing Quarter', CRWV Deal Impresses Wall Street", 4 August 2026](https://finance.yahoo.com/markets/stocks/articles/blze-stock-hits-55-month-140512183.html)
6. [MarketScreener, Backblaze, Inc. (BLZE) news, quotes and analyst-consensus page, market data as of 9 October 2026](https://www.marketscreener.com/news/backblaze-to-present-at-ai-infra-summit-2026-architecting-the-ai-data-plane-ce785bdcdc8bf12c)
7. [Backblaze quarterly revenue and growth from its SEC filings, retrieved 10 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001462056)
8. [Business Wire via Yahoo Finance, "Backblaze Announces Pricing of Upsized $175 Million Convertible Senior Notes Offering", 19 August 2026](https://finance.yahoo.com/markets/stocks/articles/backblaze-announces-pricing-upsized-175-021700817.html)
9. [Seeking Alpha, "Backblaze: AI Contracts Strengthen The Growth, But Margins Face A Temporary Hit", 15 September 2026](https://seekingalpha.com/article/4946455-backblaze-ai-contracts-strengthen-the-growth-but-margins-face-a-temporary-hit)
10. [Backblaze, quarterly figures from its SEC filings, retrieved 10 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001462056)


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Backblaze's $335 million CoreWeave contract doesn't hit its minimums until mid-2027; stock at $12.69 — The Inference. Canonical: https://theinference.org/article/backblaze-s-335-million-coreweave-contract-doesn-t-hit-its-minimums-until-mid-2027-stock-at-12-69