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CoreWeave's stock keeps dropping as investors worry about its heavy debt for growing its AI business.

MarketRead the original at Benzinga
Bad for CRWV

CoreWeave had about $52 billion in debt and lease payments by June, and its second-quarter interest bill rose from $267 million to $640 million. McBee cites cash generation if building stops and possible cheaper loans, but borrowing near 9% for returns near 1% remains the stronger concern.

CRWV · CoreWeave Inc.

AI read · Bad for CRWV

The AI's read

That gap means new buildings may add costs faster than they add money. Rising rates make future projects more expensive to fund. McBee says the company could generate cash if it stopped building and is exploring cheaper loans. Those steps may help, but they do not change the stated gap between borrowing costs and returns.

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