Coreweave stock drops 25% amid bankruptcy concerns over $50B debt

Coreweave, an Nvidia -backed AI cloud provider, has seen its stock price decline by 25% this week amid growing concerns over its financial stability. The company is reportedly grappling with significant debt, totaling between $50 billion and $52 billion, which is raising alarm among investors about its capacity to manage these obligations. Credit-default swaps for Coreweave have surged past 1,000 basis points, a level often associated with distressed credit, despite management’s assertions of sufficient contract backlog to cover debts. This financial unease is prompting market participants to reassess the likelihood of a potential bankruptcy announcement by Coreweave.

Also reported by TokenPost.

Source: Crypto Briefing