CoreWeave Stock Plunges as Data Center Financing Stalls Over Credit Rating Concerns

CoreWeave (CRWV-US) shares plummeted as much as 12% intraday on February 20, closing 8.12% lower at $89.25, following reports of a stalled data center financing deal. The sell-off highlights growing investor scrutiny regarding the Nvidia-backed cloud provider's leveraged balance sheet. Business Insider reported that asset manager Blue Owl Capital failed to secure debt financing for a data center project intended for CoreWeave. Lenders reportedly rejected the deal due to the company's B+ credit rating from S&P Global Ratings, which sits several notches below investment grade. Despite a 19% year-to-date gain, the firm faces persistent skepticism from short sellers, including Jim Chanos, regarding its high debt-to-equity ratio and the sustainability of its AI-dependent business model.