CoreWeave (CRWV.US) bonds hit a new low as changes in Texas data center policies impact AI cloud trading

According to reports from Zhihu Finance APP, CoreWeave (CRWV.US) bonds plunged sharply on Wednesday, with some hitting new lows. This followed victories by US Democratic candidates advocating a slowdown in data center construction in several gubernatorial elections, including Texas.

According to Trace pricing data, the AI cloud computing provider’s unsecured bonds due in 2031 were the worst performers among high-yield borrowers on Wednesday, with trading prices falling as low as 79.5 cents on the dollar. Its bonds due in 2030 and 2032 also declined and are now hovering near prices typically regarded as distressed debt, with yields exceeding 15%.

CoreWeave is one of the companies affected by policy choices in Texas. In the state, Gina Hinojosa defeated incumbent Governor Greg Abbott to become Texas’s first Democratic governor in over 30 years. She has repeatedly called for an immediate halt to data center development.

Other elected governors, including Ohio Democrat Amy Acton and Georgia Democrat Keisha Lance Bottoms, also advocated a slowdown in data center construction during their campaigns in recent months.

A CoreWeave spokesperson said in a statement: “We currently expect that changes in the political landscape will not have any impact on CoreWeave’s existing customer commitments or related backlog orders.” The spokesperson also stated that the company anticipates its existing capacity will be particularly valuable.

Last month, CoreWeave’s surging borrowing costs already caused market volatility, as traders scrambled to assess whether speculative-grade companies related to AI construction could withstand higher interest rates.

CoreWeave’s share price fell 9.9% on Wednesday to $48.42, the lowest closing level since May 2025. The stock has fallen 32% so far this year.