KawzInvests — CoreWeave pays about 8.4% blended, not 15%; the real risk is the next financing

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KawzInvests — CoreWeave pays about 8.4% blended, not 15%; the real risk is the next financing

A line-by-line read of CoreWeave's Q2 10-Q (posted Oct 14). By his count, one $1.3B loan out of roughly $35B of debt carries 15%, and the blended cost is about 8.4%. The 15% figure going around is the market yield on the 2032 bond, not what the company pays. His follow-up post names the real risk: if the next ~$20B has to be raised near 15% instead of as contract-backed loans, that one tranche would cost more than all of today's interest. That makes CoreWeave's next financing the thing to watch.

Open on X KawzInvests (@KawzInvests)
KawzInvests✓ @KawzInvests
Oct 14

$CRWV isn’t paying 15% interest. Only 4% of their debt costs that. I went through the Q2 10-Q line by line. Out of ~$35B in debt, exactly one loan sits at 15%. It’s $1.3B, due March 2028, and already being paid down. The 15% chart going around is the market yield on their 2032

Why it's worth your time

A line-by-line read of CoreWeave's Q2 10-Q (posted Oct 14). By his count, one $1.3B loan out of roughly $35B of debt carries 15%, and the blended cost is about 8.4%. The 15% figure going around is the market yield on the 2032 bond, not what the company pays. His follow-up post names the real risk: if the next ~$20B has to be raised near 15% instead of as contract-backed loans, that one tranche would cost more than all of today's interest. That makes CoreWeave's next financing the thing to watch.

10 events
DateTypeEvent
Oct 15 tweetMarkos (AAIG) — neocloud returns now come down to yield on cost vs. 6–9% financing; watch dollar-per-megawatt pricing Oct 16 tweetMarkos - Neocloud systemic risk is the B/C-tier wave borrowing against weak contracts, not the big names Oct 9 tweetSemiAnalysis — rising H100 rents break the depreciation curve lenders underwrite, with $7T of debt coming Oct 9 ArticleAI Money Bought Running Power Plants and Sold the Build-Out Oct 2 tweetSemiAnalysis — Google's GPU cloud climbs to Gold in ClusterMAX, but CoreWeave and Nebius are still the Platinum names it holds up as the bar Oct 1 tweetKawzInvests — open models now carry 61% of Vercel gateway tokens while H200/B200 rents rise and H100/A100 rents fall Sep 21 pickBloomberg — a CoreWeave-leased data center goes to the junk-bond market for about $1.1 billion Sep 16 tweetParadis — Nebius raises rates on four-year-old H100s, and the GPU-depreciation bear case with them Sep 10 tweetM. V. Cunha — Nebius management at Goldman: demand visibility stretches to 24+ months, older GPUs stay economically relevant Sep 6 ArticleCoreWeave: delivered growth and financing demands

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