CoreWeave (CORE) has seen its stock price decline sharply following growing concerns over its rising debt levels. Despite the equity sell-off, demand for the company’s convertible bonds remains robust, signaling a divergence in investor sentiment.
- CoreWeave’s stock (CORE) declined 28% over two weeks amid rising debt concerns.
- Total debt reached $1.35 billion as of Q3 2025, with $380 million in short-term maturities.
- Convertible bonds (2.75% due 2028) trade at a 14% discount to conversion value.
- Trading volume in convertible bonds rose 65% over the same period.
- Q3 operating cash flow was -$112 million, indicating continued cash burn.
- Debt maturities of $190 million are due in April 2026, raising refinancing risks.
CoreWeave’s common stock (CORE) has dropped approximately 28% over the past two weeks, according to recent trading data, as investors react to new disclosures about the company’s debt profile. The firm reported total outstanding debt of $1.35 billion as of Q3 2025, up 42% year-over-year, with $380 million in short-term maturities due within the next 12 months. This has raised concerns about refinancing risks and liquidity pressures. Despite the equity weakness, the company’s convertible bond series—specifically the 2.75% notes due 2028 (CUSIP: 205253AB1)—have seen trading volume surge by 65% over the same period. The bonds are now trading at a 14% discount to their conversion value, reflecting elevated demand from fixed-income investors seeking yield in a low-rate environment. This pricing suggests that some market participants believe the risk of default is low, or that the potential upside from conversion outweighs the downside risk. The divergence between equity and bond performance underscores a growing trend in high-growth tech equities, where investors separate credit risk from equity risk. For CoreWeave, this dynamic may provide a temporary buffer against liquidity stress, as access to bond markets could support refinancing efforts. However, the company’s ability to generate positive free cash flow remains under pressure, with Q3 operating cash flow at -$112 million. Market participants are closely monitoring upcoming earnings and the company’s debt maturity schedule, particularly the $190 million bond due in April 2026. A failure to secure new financing or meet debt covenants could trigger a broader credit event, affecting both equity and bond holders.