CoreWeave Shares Fall 29% as AI Expansion Debt Costs Stay Elevated

CoreWeave shares lost 29% between the end of September and Oct. 21 as elevated borrowing costs sharpened investor focus on how the AI cloud provider will finance its data-center expansion. The stock closed at $61.82 on Oct. 21, compared with $87.12 at the Sept. 30 close. Yields on some of CoreWeave’s unsecured bonds reached about 15%. Its five-year credit-default swap spread, which reflects the cost of insuring debt against default, was near 1,067 basis points, up 30% in October. The Treasury comparison covers a separate period: the 10-year U.S. Treasury par yield fell to 5.13% on Oct.

Source: TokenPost