Computing-power credit is starting to crack
CoreWeave bonds have fallen below face value to 80 cents on the dollar, with yields nearing 15%, while its stock has dropped 17% in a week. Nvidia has lost $270 billion in market value over the past week. Gartner’s numbers are even harsher: AI data centers will need to generate $8.5 trillion by 2030 to cover capital and financing costs, but actual corporate spending will top out at just $3.6 trillion, leaving more than $4 trillion in assets at risk of impairment.
This chain of circular financing is loosening, and decentralized computing-power assets are taking the hit first. Near-term selling pressure is high. Market funds are shifting back toward major assets, and market makers’ order-book depth in the AI sector has already thinned, making any rebound vulnerable to a pullback. The key is whether the previous low can hold. If it doesn’t, prices could slide faster.
For those of you holding computing-power tokens, what’s your cost basis? Would you dare to add at these levels, or wait for confirmation of an uptrend?
$TAO $RENDER $FET
CoreWeave bonds have fallen below face value to 80 cents on the dollar, with yields nearing 15%, while its stock has dropped 17% in a week. Nvidia has lost $270 billion in market value over the past week. Gartner’s numbers are even harsher: AI data centers will need to generate $8.5 trillion by 2030 to cover capital and financing costs, but actual corporate spending will top out at just $3.6 trillion, leaving more than $4 trillion in assets at risk of impairment.
This chain of circular financing is loosening, and decentralized computing-power assets are taking the hit first. Near-term selling pressure is high. Market funds are shifting back toward major assets, and market makers’ order-book depth in the AI sector has already thinned, making any rebound vulnerable to a pullback. The key is whether the previous low can hold. If it doesn’t, prices could slide faster.
For those of you holding computing-power tokens, what’s your cost basis? Would you dare to add at these levels, or wait for confirmation of an uptrend?
$TAO $RENDER $FET