CoreWeave CEO’s Debt Pledge Helps Drive 15.6% CRWV Premarket Rally

CoreWeave shares rose 15.6% to $56.33 in premarket trading Wednesday after CEO Michael Intrator said the AI cloud company would avoid unsecured debt at current yields. The pledge helped lift the stock after a 47.5% slide in a month, according to BeInCrypto. On Tuesday’s earnings call, Intrator said CoreWeave would not use the unsecured debt market to fund its business at current yields; CFO Nitin Agrawal said the company would not issue more unsecured debt through 2027. CoreWeave plans to borrow against signed customer contracts at an expected 7% to 7.5%, while customers are expected to provide about $9 billion in prepayments and deposits within three months. The company also plans to raise less than $5 billion at the parent level through 2027. Its 2032 bonds yielded above 16% on November 6, more than three times the 10-year Treasury yield. Options had priced a 20.7% move in either direction. Interest expense reached $846 million in the third quarter, and CoreWeave expects $1.05 billion to $1.15 billion next quarter. Over the past year, interest costs increased 173%, while revenue grew 168%. Jefferies cut its price target to $90 from $150; Citizens kept a $180 target and said financing costs remain substantial. Nebius borrowed $3.5 billion through a one-year secured facility from Citi in October, while IREN closed a $3.65 billion GPU loan backed by a Microsoft contract in June. Nebius reports Thursday.