Oct 14 (Reuters) – CoreWeave CEO Mike Intrator said on Wednesday market can sometimes “misunderstand and act irrationally”, with shares of the AI cloud-computing provider closing down around 15%.
Here are some details:
• The company’s deal backlog is large enough to more than support its debt obligations, Intrator told employees in a memo that was seen by Reuters
• Issues such as the difficulties and delays observed in the attempted IPOs and debt financings of some of CoreWeave’s rivals “are bleeding into the narrative around CoreWeave”, Intrator said in the memo
• According to Bloomberg News, which first reported on the remarks earlier in the day, CoreWeave’s bonds have plunged to levels that typically indicate distress
• CoreWeave’s unsecured debt due in 2032 traded below 80 cents on the dollar on Wednesday, Bloomberg News said in a separate report citing Trace pricing data
• CoreWeave has reported revenue backlog of $104.2 billion in the second quarter, up from $99.4 billion in the first quarter
• On top of the backlog, the company said it had secured more than $25 billion of net new customer commitments in the third quarter
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)
