# $CRWV cost of capital
Latent Equity · published Oct 20, 2026 · AI capital ledger
Post: https://x.com/Latent_Equity/status/2112556235635474521

Our read: $CRWV's debt got cheaper because of the mix of debt it took on, not because lenders think it's safer.

Interest paid ÷ average debt (our calc, from its filings) fell from 11.1% in Q1'25 to 7.8% in Q2'26. Its spread over the 5-year Treasury shrank from ~6.8pp to ~3.7pp.

But look at where the drop comes from:
- 1.75% convertible notes ($6.6B of $35.6B of debt at 6/30/26)
- Newer GPU-backed loans priced far lower: from SOFR+9.62% (DDTL 1.0, 2023) to SOFR+4.0–4.5% (2025–26), and SOFR+2.25% on the DDTL 4.0 Facility (Mar'26), which the company reports as non-recourse debt
- Lower SOFR (the base rate on floating loans)

New US-dollar unsecured notes still pay 9.00–9.75%, including the 2026 issues. Over the 5-year Treasury that's ~5.1–5.8pp at each issue, with no tightening (our calc, monthly averages). Our read: debt backed by contracts and collateral got cheaper; the market's view of the company's own credit didn't improve.

Caveat: Q2'26 debt rose $10.4B. Averaging opening and closing balances can skew the 7.8% if the money came in late in the quarter.

What would prove us wrong:
- the Q3'26 10-Q (due ~Nov) shows the implied rate back above ~9%, or new US-dollar unsecured coupons drop well below 9%.

General research, the same for every reader. Not investment advice.