CoreWeave: A Financial Accident In The Making

David Desjardins
3.54K Followers

Summary

  • With a forecasted ~1.8 GW of active data center capacity by the end of 2026, CoreWeave is one of the largest players in the AI infrastructure ecosystem.
  • Relative to its 70 MW of active data center capacity at the end of 2023, CRWV multiplied the size of its asset base by ~25x in roughly three years.
  • Based on management's projection of reaching 8.0 GW of data center capacity by 2030, the company is still early in its infrastructure buildout.
  • However, there is now almost $30 billion of net debt on the balance sheet at a weighted-average interest rate of 9.0%.
  • It is only a matter of time before the interest expenses cross the $3.0 billion mark, which is quite a bit of money for a company still struggling to achieve positive operating income on a sustained basis.

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This article was written by

David Desjardins
3.54K Followers
For almost a decade, I held research analyst positions in various investment firms, mostly in Toronto. I started in sell-side research with a Canadian bank, then moved to a hedge fund, followed by a family office and then finished my career in wealth management. I was 20 on my first day on Bay Street. I will forever remember. I had worked so hard to get there, from a small French-speaking town in Québec. Getting my CFA and CAIA designations by 25 was another important milestone. I was a young man with a dream, wanting to make it big. However, life was about to teach me a painful lesson. Before conquering the world, a man must first conquer himself by going into the depths of his own abyss. Only then may he shed his naivety and become a man truly able to love.For the last four years, I have been living in a yurt in the boreal forest, approximately 100 kilometres away from the closest paved road or grocery store. In a forest full of birds, just beside a lake full of fish. For water, I go to the creek. For heat, there is plenty of white birch and quaking aspen around. If I need anything in town, I have plenty of money for my needs. I am now 31, in love, and as free as the birds in the skies, so what else can I ask for? In all humility, and in all gratitude, I say thank you to this grandiose symphony we call life.

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