CoreWeave Inc. (CRWV) bonds tumbled sharply on Wednesday, with some falling to fresh lows, after Democratic candidates who advocate slowing down data center construction won gubernatorial races in multiple states, including Texas.
According to Trace pricing data, the AI cloud services provider's unsecured notes maturing in 2031 were the worst performers among high-yield borrowers on Wednesday, trading as low as 79.5 cents on the dollar. Its 2030 and 2032 bonds also declined and are now hovering near levels typically associated with distressed debt, with yields exceeding 15%.
CoreWeave is among the companies affected by policy choices in Texas. In that state, Gina Hinojosa defeated incumbent Governor Greg Abbott to become the first Democratic governor of Texas in more than 30 years. She has repeatedly called for an immediate moratorium on data center development.
Other newly elected governors, including Democrat Amy Acton in Ohio and Democrat Keisha Lance Bottoms in Georgia, also campaigned in recent months on slowing data center construction.
A CoreWeave spokesperson said in a statement: "We currently do not expect the changing political landscape to have any impact on CoreWeave's existing customer commitments or related backlog." The spokesperson also said the company expects its existing capacity to be particularly valuable.
The surge in CoreWeave's borrowing costs already rattled markets last month, as traders rushed to assess whether speculative-grade companies tied to AI buildouts can withstand higher interest rates.
CoreWeave shares fell 9.9% on Wednesday to $48.42, the lowest close since May 2025. The stock has declined 32% year to date.
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