ARK Invest bought 188,665 CoreWeave (NASDAQ:CRWV) shares on Wednesday and 192,566 more on Thursday, the same day CoreWeave's five-year credit default swaps hit a record intraday level of 1,194.5 basis points. The stock fell 15.46% to $65.78 on Wednesday, then rose 5.94% to $69.69 on Thursday, and is down 49.95% over the past year. The 9% notes due 2031 dropped to 79.9 cents on the dollar, lifting the yield to 15.6%, and the swap pricing implies a more than 60% chance of default within five years. With about $52 billion in debt and leases and a second-quarter net interest expense of $640 million that exceeded its $626 million net loss, the article argues that the credit picture calls for caution, since common shareholders are paid last.
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