CoreWeave bonds plunge as Texas elects data-center foe Hinojosa
Democrat Gina Hinojosa's gubernatorial win in Texas, where she has called for a data center moratorium, sent CoreWeave's unsecured debt to new lows.
What to know
- CoreWeave's unsecured bonds fell to distressed levels (79.5 cents on the dollar for 2031 debt) after Democratic wins in gubernatorial races, particularly in Texas.
- Texas Governor-elect Gina Hinojosa has called for an immediate data center moratorium, directly threatening CoreWeave's operations and expansion plans in the state.
- The AI cloud-computing provider's stock dropped 7.2–9.9% on the election results, reflecting market concern about regulatory headwinds in a key operating region.
Data center expansion should be constrained or halted due to environmental or community concerns.
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“You hate^wlove to see it.”
hrbrmstr@mastodon.social · Mastodon ↗
“Democrat Gina Hinojosa, who has called for an immediate data center moratorium, ousted Gov. Greg Abbott; CoreWeave stock fell 7.2%”
Cris Tolomia · Quartz
Gina Hinojosa Texas Governor-electCoreWeave Inc. AI cloud-computing provider
Greg Abbott Former Texas Governor
How it unfolded 1 development · click the chart to see its coverage articlesposts
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Texas Governor-elect Hinojosa calls for data center moratorium
Gina Hinojosa, the newly elected Texas governor, called for an immediate data center moratorium.
“You hate^wlove to see it.”
— hrbrmstr@mastodon.social · source -
first by Bloomberg Tech, 3d ago · also Bloomberg, Quartz
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H
You hate^wlove to see it. loginwalled: https://www. bloomberg.com/news/articles/20 26-11-04/coreweave-bonds-hit-new-lows-as-texas-data-centers-in-crosshairs?ref=runtimewire&leadSource=uverify%20wall "CoreWeave’s surging borrowing costs sent a shudder across markets last month, as traders raced to assess whether speculative-grade companies…
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CoreWeave's bonds tumbled on Wednesday, in some cases to new lows, after Democratic candidates in favor of slowing down data-center construction won a number of gubernatorial races, including in Texas.
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background
CoreWeave bonds and stock collapse on election results — CoreWeave's bonds tumbled to new lows, with unsecured debt due in 2031 trading as low as 79.5 cents on the dollar. The company's stock fell between 7.2% and 9.9%. Yields on 2030 and 2032 obligations exceeded 15%, reaching distressed levels.
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background
Democratic candidates opposed to data-center expansion win gubernatorial races — Democratic candidates in favor of slowing down data-center construction won a number of gubernatorial races, including in Texas, where Gina Hinojosa defeated incumbent Greg Abbott.