CoreWeave shares fell sharply after criticism over its debt and bond yields, though they recovered a little on Thursday. An investor in the company argues its non-cancellable customer contracts should cover its borrowings.
01Summary
- 01CoreWeave shares fell 15.46% on Wednesday and another 5.62% in after-hours trading after a post on X highlighted its bond yield touching 15%.
- 02The Financial Times reported that CoreWeave co-founder and finance lead Brannin McBee wants to borrow more money from insurance companies.
- 03CoreWeave said its Q2 operating lease liabilities were $16.3 billion, total debt was $35.6 billion, revenue was $4.6 billion and net loss was $1.4 billion.
- 04The company said it had $103.7 billion in remaining performance obligations, with 41% due through 2028.
- 05Neostellar Capital Corp principal Evan Schlossman said CoreWeave’s take-or-pay contracts with Microsoft and OpenAI backstop its debt, while critics doubt those commitments will hold if demand weakens.
02Why it matters
The story matters because CoreWeave is carrying heavy debt while still losing money, so any weakness in its customer contracts could affect lenders and shareholders. It also speaks to wider concerns about whether the AI build-out is being financed too aggressively.
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