{"id":657445,"date":"2026-10-26T09:50:19","date_gmt":"2026-10-26T09:50:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/657445\/"},"modified":"2026-10-26T09:50:19","modified_gmt":"2026-10-26T09:50:19","slug":"from-crypto-roots-to-ai-selloff-why-coreweave-is-under-pressure","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/657445\/","title":{"rendered":"From Crypto Roots to AI Selloff: Why CoreWeave Is Under Pressure"},"content":{"rendered":"\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">CoreWeave (CRWV) shares have fallen more than a third in October as investors balk at roughly $52 billion of debt taken on for artificial intelligence (AI) data centers, even though revenue more than doubled last quarter.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The Nvidia-backed company did not start in AI. It was founded in 2017 as Atlantic Crypto, mining Ethereum (ETH) on graphics processing units (GPUs), and renamed itself CoreWeave in 2019 after repurposing that hardware to rent out computing power.  <\/p>\n<p>            Why Are Bond Investors Fleeing a Revenue Boom?          <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">CoreWeave booked about $2.5 billion in second-quarter revenue, up 112% year over year. Debt markets, however, are charging far more for the borrowing. Its unsecured bonds yield about 15%.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Meanwhile, the spread on its credit default swaps, contracts that insure against default, has passed 11%.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\"><iframe loading=\"lazy\" title=\"Why CoreWeave is at the center of the AI selloff\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/Ic1AagONq7Q?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Nvidia CEO Jensen Huang said last week that CoreWeave needs no backstop from the chipmaker, and he addressed its financing costs directly.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">&#8220;Their cost of capital is actually decreasing.&#8221;  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">He spoke on Oct. 15, a day after CoreWeave stock sank 15%, its steepest one-day fall since February.  <\/p>\n<p>        What Happens to the AI Trade if CoreWeave Cannot Refinance?          <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Nvidia is entangled on three fronts. It supplies the chips, owns about 9% of CoreWeave, and has committed to buy up to $6.3 billion of its capacity if no other customer does.  <\/p>\n<p>    <a href=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/9e79692101f783ed0f628db24adc106c87ecc6ebb117a10d22131aac70a2ab9f\/lightyear_networkapi\/resizefit_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fmedia.zenfs.com%2Fen%2Fbeincrypto_us_662%2Ffacf327982ac5516a07264bb33c4fcb0.png\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"The CRWV price is down nearly 40% in the past month.\" height=\"374\" width=\"960\" class=\"yf-1f8hkhu loader\"\/><\/a> The CRWV price is down nearly 40% in the past month. Source: Trading View           <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The crypto links also persist. CoreWeave has leased space from Core Scientific (CORZ), a bitcoin miner shifting toward AI hosting, whose shareholders blocked a $9 billion CoreWeave takeover in October 2025.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Neoclouds, the GPU-rental providers built around Nvidia chips, are under strain as a group. Nebius and IREN have each fallen at least 30% this month, alongside CoreWeave, per CNBC.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">A weak CoreWeave refinancing could therefore reset borrowing costs for every debt-funded GPU buildout, including miners such as Core Scientific that are converting to AI.  <\/p>\n<p class=\"text text-block paragraph text-left  neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Read the Original story <a href=\"https:\/\/beincrypto.com\/coreweave-ai-selloff-crypto-origins-debt\/\" data-ylk=\"slk:From%20Crypto%20Roots%20to%20AI%20Selloff%3A%20Why%20CoreWeave%20Is%20Under%20Pressure;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;From Crypto Roots to AI Selloff: Why CoreWeave Is Under Pressure&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">From Crypto Roots to AI Selloff: Why CoreWeave Is Under Pressure<\/a> by Darryn Pollock at <a href=\"https:\/\/beincrypto.com\" data-ylk=\"slk:beincrypto.com;elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;beincrypto.com&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">beincrypto.com<\/a>  <\/p>\n","protected":false},"excerpt":{"rendered":"CoreWeave (CRWV) shares have fallen more than a third in October as investors balk at roughly $52 billion&hellip;\n","protected":false},"author":2,"featured_media":657446,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[6638,345,343,344,114,357,184,268,13368,85,4141,13516,9445,46,2450,8553,9331,266,13517,4861,688,5615,13369,13370,5268,13518,270,125,13519],"class_list":["post-657445","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-401k","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-il","tag-investing","tag-investment-tools","tag-investor","tag-israel","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-technology","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/657445","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=657445"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/657445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/657446"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=657445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=657445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=657445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}