Chainfir Capital warns CoreWeave bond distress exposes risks in debt-funded AI growth

By Public Technologies
  • Chainfir Capital's analysis flagged AI infrastructure financing risks, citing CoreWeave's roughly 7.0x gross EBITDA leverage excluding leases for fiscal 2025.
  • CoreWeave default insurance costs exceeded 1,000 basis points, a record high, versus about 547 basis points at the end of June.
  • Its unsecured notes due 2031 and 2032 traded below 80 cents on the dollar, with yields above 15%.
  • Supplier leases can extend to 15 years, exposing a funding mismatch with customer contracts typically lasting three to five years.
  • CoreWeave's US$104.2 billion order backlog does not establish present liquidity, the analysis warned, challenging management's assurances that orders support all debt obligations.


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