---
title: 'CoreWeave''s Hidden Debt: The $18B Gap They Don''t Want You to See'
source: 'https://youtube.com/watch?v=qeOdoumCX_Q'
video_id: 'qeOdoumCX_Q'
date: 2026-09-02
duration_sec: 119
channel: 'Meet Kevin'
---

# CoreWeave's Hidden Debt: The $18B Gap They Don't Want You to See

> Source: [CoreWeave's Hidden Debt: The $18B Gap They Don't Want You to See](https://youtube.com/watch?v=qeOdoumCX_Q)

## Summary

The video analyzes CoreWeave's financial health, revealing a significant liquidity gap: $18 billion in short-term bills versus only $6 billion in cash. It highlights how the company's disclosed 9% weighted average cost of capital may understate the true cost of its debt, which was sold at a discount, resulting in an effective yield closer to 10.6%.

### Key Points

- **CoreWeave's Liquidity Gap** [00:00] — CoreWeave has $18 billion in short-term bills due within 12 months but only $6 billion in cash, raising sustainability concerns.
- **Disclosed Cost of Capital** [00:33] — CoreWeave's financial statements claim a weighted average cost of capital of 9%, suggesting they are not borrowing at distressed pricing.
- **WSJ Report on Debt Discount** [00:48] — According to the Wall Street Journal, CoreWeave sold debt at a discount, leading to an effective yield higher than 10%.
- **How Debt Discounts Work** [01:03] — Selling $100 of debt at a 9% yield means the investor gets $9 annually. But if the debt is sold at $85, the effective yield rises to about 10.6%.
- **True Cost of Capital** [01:27] — CoreWeave's last fundraising round cost them $9 on $85, equating to nearly 10.6%, substantially higher than the disclosed 9%.

### Conclusion

CoreWeave's financial disclosures may legally understate its true borrowing costs, masking a more precarious financial position than presented.

## Transcript

What if I told you there was a company in the AI space that had $18 billion of short-term bills to pay? Literally, we gotta make payments on this stuff within the next 12 months. And they had just $6 billion of cash, and they just had to raise money at even less desirable rates than they're letting on.
Well, that company is called CoreWeave. And this isn't to bag on CoreWeave, it's the question, hey, wait a second, how sustainable is this? Here's the balance sheet proof so you know I'm
not making it up, but here's what's worse. This is all of the debt that they owe. And at the bottom, they say the company's weighted average cost of capital is just 9%. They make it seem like, hey, we're not borrowing at distressed pricing. According to the Wall Street Journal,
Coreweave actually had to sell their debt at a discount leading to a higher than 10% effective yield. Here's how that works. Let's say you sell $100 of debt at a 9% yield. The
investor is getting $9 on that $100 of debt, right? 9%. Weighted average cost of capital, 9%. What's to see here? But if the Wall Street Journal is right, and Corweave is actually
selling the debt at a discount at, let's say, $85 is what they're selling it for, they could still legally disclose that their cost of capital is 9%.
But their last fundraising round actually cost them $9 into $85 as a yield, which if you divide it, works out to almost 10.6%,
which is substantially higher than they let on in their financial statements. So here's another example where legally you could say you're paying this much in debt, But the reality is you're paying this much because you were able to raise significantly less upfront money.