CoreWeave’s market value has fallen from about $90 billion, reached three months after its March listing last year, to roughly $34 billion, while its shares have dropped 29% this month. The yield on its unsecured debt is close to 15%, and the spread on its five-year credit default swaps has surged 164% over the past year to 10.67%. Credit investors have put new commitments on hold until the midterm elections as rising interest rates threaten to increase financing costs for debt-heavy cloud operators. CoreWeave must repay $20.7 billion through 2030, while Nvidia owns about 9% of the company and Microsoft generated more than two-thirds of its revenue last year. Despite $5.5 billion in cash at the end of the second quarter, analysts expect negative free cash flow of $10.1 billion in the third quarter, and analyst Rob Oliver estimates roughly $30 billion more capital may be needed in 2027, although CEO Mike Intrator says the company maintains several financing options.
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