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    CoreWeave's blended debt cost estimated at 8.4%, not 15%

    A user reviewing CoreWeave's Q2 10-Q says only one $1.3 billion loan carries a 15% rate.

    KawzInvests @ OCPK@
    2 Sources, 3h ago, first seen 3h ago

    TLDR

    A user who reviewed CoreWeave's Q2 10-Q estimates its roughly $35 billion in debt costs 8.4% on a blended basis. They say only one $1.3 billion loan carries a 15% rate and is due in March 2028. They argue that a circulating 15% figure reflects the market yield on CoreWeave's 2032 bond, not the 9.625% rate the company pays on it. They say about $20 billion of 2026 capital spending remains to fund.

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    2 Sources, first seen 3h ago

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    Combined views

    98.9K

    2 Sources, first seen 3h ago

    583 likes74 comments217 saves64 reposts
    Image: @rohanpaul_ai on X

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    Sentiment

    Positive——Negative

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    2 Sources

    KawzInvests @ OCP@KawzInvests$CRWV isn’t paying 15% interest. Only 4% of their debt costs that. I went through the Q2 10-Q line by line. Out of ~$35B in debt, exactly one loan sits at 15%. It’s $1.3B, due March 2028, and already being paid down. The 15% chart going around is the market yield on their 2032 bond. A higher yield doesn’t change what CoreWeave pays. It works like a mortgage. If you locked in at 3% and rates go to 7%, you’re still paying 3%. CoreWeave locked that bond at 9.625% and still pays 9.625%. What they actually pay > $6.6B of convertibles at ~2% > ~$10B of bonds at 9-10% > Most secured loans around 9% > ~8.4% blended across everything They have roughly $20B of 2026 capex left to fund, and 2027 will need more. Their main funding tool has been loans backed by customer contracts. The investment grade one backed by Meta priced around 5.9% in March. If they keep borrowing that way, I think the math holds. Zooming out, the AI trade still looks intact to me. $ASML reported record Q3 profit this morning and said lithography demand will outrun their supply in 2027 and 2028, even after adding ~30% capacity each year. Customers are already asking about 2029 and 2030 slots. Demand is still outpacing supply everywhere I look. $CRWV $ASML3h
    Rohan Paul@rohanpaul_aiBloomberg: CoreWeave’s unsecured 2032 bonds fell below 85 cents on the dollar, the price that usually signals distress, yields near 15% on concern about AI borrowing binge Those notes are $1.25B of 9.625% senior debt sold in June, so lenders have marked them down sharply within 4 months of issue. The shares fell as much as 17% today, though the stock remains more than 60% above its March 2025 IPO price. The business runs on expensive debt. CoreWeave buys GPUs, builds data centers and rents the capacity to AI developers, and it funds most of that with borrowing. The interest bill is now bigger than the losses. The company lost $626M in the second quarter while net interest expense reached $640M, driven by heavy capital spending. Revenue is growing fast, but the cost of financing the growth is consuming it. It’s spreading beyond CoreWeave. Investors are treating it as a test of debt-funded AI infrastructure in general. Oracle’s bonds weakened, and AI-linked stocks from Nebius to Dell fell as markets questioned how much debt sits beneath the buildout.1h
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    2 Sources

    KawzInvests @ OCP@KawzInvests$CRWV isn’t paying 15% interest. Only 4% of their debt costs that. I went through the Q2 10-Q line by line. Out of ~$35B in debt, exactly one loan sits at 15%. It’s $1.3B, due March 2028, and already being paid down. The 15% chart going around is the market yield on their 2032 bond. A higher yield doesn’t change what CoreWeave pays. It works like a mortgage. If you locked in at 3% and rates go to 7%, you’re still paying 3%. CoreWeave locked that bond at 9.625% and still pays 9.625%. What they actually pay > $6.6B of convertibles at ~2% > ~$10B of bonds at 9-10% > Most secured loans around 9% > ~8.4% blended across everything They have roughly $20B of 2026 capex left to fund, and 2027 will need more. Their main funding tool has been loans backed by customer contracts. The investment grade one backed by Meta priced around 5.9% in March. If they keep borrowing that way, I think the math holds. Zooming out, the AI trade still looks intact to me. $ASML reported record Q3 profit this morning and said lithography demand will outrun their supply in 2027 and 2028, even after adding ~30% capacity each year. Customers are already asking about 2029 and 2030 slots. Demand is still outpacing supply everywhere I look. $CRWV $ASML3h
    Rohan Paul@rohanpaul_aiBloomberg: CoreWeave’s unsecured 2032 bonds fell below 85 cents on the dollar, the price that usually signals distress, yields near 15% on concern about AI borrowing binge Those notes are $1.25B of 9.625% senior debt sold in June, so lenders have marked them down sharply within 4 months of issue. The shares fell as much as 17% today, though the stock remains more than 60% above its March 2025 IPO price. The business runs on expensive debt. CoreWeave buys GPUs, builds data centers and rents the capacity to AI developers, and it funds most of that with borrowing. The interest bill is now bigger than the losses. The company lost $626M in the second quarter while net interest expense reached $640M, driven by heavy capital spending. Revenue is growing fast, but the cost of financing the growth is consuming it. It’s spreading beyond CoreWeave. Investors are treating it as a test of debt-funded AI infrastructure in general. Oracle’s bonds weakened, and AI-linked stocks from Nebius to Dell fell as markets questioned how much debt sits beneath the buildout.1h
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