CoreWeave Is Projected to Have a 6.3x Gross Leverage Ratio by Year End. The Market Is Worried About the Neocloud's Balance Sheet.

CoreWeave (CRWV) shares dropped 15.5% as investors zeroed in on the neocloud's balance sheet, with debt-servicing capacity in a rising rate environment the central worry.

The numbers behind the selloff: CoreWeave has taken on $27.6 billion in debt to build 51 data centers for AI customers. Projections show a 6.3x gross leverage ratio by year-end. That ratio is the core of the bear case, since heavy borrowing leaves little cushion if interest costs climb.

Offsetting the leverage is a $104 billion revenue backlog, which gives CRWV a large pool of contracted demand to grow into. The market, however, is questioning how durable that backlog is. Customer concentration remains a flagged concern, as does whether the AI infrastructure boom can sustain current commitments.

Interpretation: the 15.5% drop suggests investors are weighing the backlog against the debt load and, for now, favoring caution. The backlog only matters if customers keep honoring commitments, and the leverage only stays manageable if financing costs stay tolerable.