Chainfir Capital warns CoreWeave bond distress exposes risks in debt-funded AI growth
CRWV•Chainfir Capital warned that CoreWeave’s debt-funded growth carries financing risks, citing roughly 7.0 times gross EBITDA leverage for fiscal 2025 and default insurance costs above 1,000 basis points. Its 2031 and 2032 unsecured notes traded below 80 cents on the dollar, with yields above 15%.
1. Debt and bond pressure
Chainfir Capital’s analysis cited CoreWeave’s roughly 7.0 times gross EBITDA leverage excluding leases for fiscal 2025. Default insurance costs exceeded 1,000 basis points, up from about 547 basis points at the end of June, while unsecured notes due in 2031 and 2032 traded below 80 cents on the dollar with yields above 15%.
2. Financing mismatch
The analysis warned that supplier leases can extend to 15 years, while customer contracts typically last three to five years. It said CoreWeave’s $104.2 billion order backlog does not establish present liquidity, challenging management’s assurances that orders support all debt obligations.
