CoreWeave's Interest Expense Hit $640 Million Last Quarter, 2.4 Times What It Was a Year Ago
The AI cloud provider's borrowing rate fell over the past year. The bill got bigger anyway -- and it isn't done growing.
Overview
Shares of artificial intelligence (AI) cloud infrastructure provider CoreWeave (NASDAQ:CRWV) trade around $82 as of this writing, down about 47% from their 52-week high. But the business keeps growing at an extraordinary pace. Second-quarter revenue rose 112% year over year to about $2.6 billion, and the company's revenue backlog reached about $104 billion (a figure that excludes more than $25 billion of new commitments added early in the third quarter).
The cost of financing that growth is climbing even faster. CoreWeave's interest expense was $640 million in the second quarter -- 2.4 times the $267 million it recorded a year earlier.
Details
And the bond market isn't helping. The 30-year Treasury yield has closed above 5% on 55 days since the start of January, the most closes above that mark in any year since 2006.
Source
Originally published at www.fool.com.