🚨CoreWeave is now in serious trouble. $CRWV is down more than 16% today and has crashed more than 50% in the last 5 months. The reason is its debt. CoreWeave owes about $35B and paid $640M in interest last quarter alone. Investors are now dumping that debt. Its 2032 bonds have crashed more than 23% since June. Bonds trading this low are treated as distressed. Because the price fell, anyone buying these bonds now earns over 15% a year. So 15% is now what CoreWeave has to pay to borrow. That is a big problem, because it plans to spend $35B to $39B this year and has only $5.5B in cash. It has to keep borrowing to keep building. Credit default swaps, which investors use to insure against default, now price a 58% chance that CoreWeave defaults within 5 years. Lenders are starting to question how the AI buildout is being paid for.