CRWV's balance sheet is horrible — it is $8 billion short and cannot pay its bills, its bonds trade below 80 cents on the dollar and Elon Musk publicly questioned the debt; bankruptcy is possible and its situation is unsustainable, even though the CEO calls the market irrational.

Then you get increased concern because yields are higher about whether or not neoclouds are actually going to be able to afford those higher yields. Yesterday we were looking at the core balance sheet and we did a whole video talking about how debt is not looking good right now.

Uh and you've got a lot of concern about companies like coreweave to even where uh Elon Musk is now tweeting.

like Cororeweave to even where uh Elon Musk is now tweeting on X going yikes in response to Cororeweave's debt that uh you know the actual bond values are falling off a cliff over here now trading below 80 cents on the dollar.

Now, the CEO of the company, allegedly, per Bloomberg, which uh you've actually got Grock doing a nice little summary of over here, quoting, "When you are building a new type of technology company, there will be periods of time when markets misunderstand and act irrationally."

You know, this is kind of where like that Elizabeth Holmes meme has to come up. Yeah. When you're disrupting the world. I can't do an Elizabeth Holmes accent. But anyway, it's um the reason I say that is because he then you know the next line here is he expressed confidence in the business model, customers and execution quality and says the relentless discipline around the financial engine we have built.

Okay. The problem is the financial engine that they have built sucks. They talk up that they have a backlog that could support all their spending, but their balance sheet sucks.

They're $8 billion short. They don't have the money that they need to pay their bills. It's no surprise that Elon Musk is saying yikes on X. It's not good.

Now what about coreweave? Can it go bankrupt? Of course. Yeah. The their balance sheet is horrible.

And then of course the underlying neoclouds are just like little early little warning signs and you know Cory's situation is unsustainable and really bad and we made a video on it yesterday and you know now it's down 10%.

I don't think it's a horrible surprise but it's also not just them it's also what's going on in the private credit market.