CoreWeave (CRWV.US)'s revenue doubles and it is difficult to overcome the pressure of $52 billion in debt

According to Woofun AI, the stock price of CoreWeave (CRWV.US) has fallen sharply since October, by more than one-third. The market focus quickly shifted from revenue growth to its debt and leasing liabilities of about $52 billion (at the end of the second quarter).

This NVDA.US (NVDA.US) -backed company is not a native AI company. Its predecessor was Atlantic Crypto, founded in 2017, which used graphics processing units for ETH mining in the early days. It wasn't until 2019 that it transformed into a computing service provider and changed its name to CoreWeave.

Although revenue for the second quarter of 2026 reached $2,575 billion, an increase of 112% year over year, the reaction from the capital market was extremely lukewarm: net loss for the quarter was $626 million, and net interest expenses of $640 million. According to data compiled by Woofun AI, the yield on some of its unsecured bonds has climbed to about 15%, the credit default swap (CDS) spread exceeded 11%, and set a record of 1,194.5 basis points on October 15. Borrowing costs are significantly higher than revenue growth. Nvidia CEO Hwang In-hoon publicly stated on October 15 that CoreWeave does not require chipmaker assistance and that its capital costs are falling, but this statement failed to boost market confidence — the day before, the company's stock price had plummeted 15%, the biggest one-day decline since February. Nvidia's relationship with CoreWeave is complex: it not only supplies chips and holds about 9% of the shares, but also promises to buy production capacity with up to $6.3 billion.

Furthermore, old ties in the cryptocurrency sector have not been broken, and CoreWeave's Bitcoin mining company Core Scientific (CORZ.US), which has long been transforming its AI hosting business, leased data center hosting space, and the latter's shareholders rejected CoreWeave's $9 billion acquisition in October 2025.

Currently, GPU rental service providers based on Nvidia chips are generally under pressure. Nebius (NBIS.US) and IREN (IREN.US) stock prices both fell by at least 30% this month, and the trend is highly synchronized with CoreWeave. If CoreWeave is unable to complete debt refinancing, all companies that rely on debt financing to build GPU facilities, including mining companies such as Core Scientific in transformation, face upward risk in borrowing costs.