CoreWeave, Inc.CRWV
CoreWeave, Inc. Fair Value Disclosure
Investments and Fair Value Measurements
Investments
The Company's investments on the consolidated balance sheets consisted of the following (in millions):
| December 31, 2025 | December 31, 2024 | ||||||||||
| Marketable securities: | |||||||||||
| Commercial paper | $ | 12 | $ | — | |||||||
| Corporate bonds | 22 | — | |||||||||
| Total marketable securities | $ | 34 | $ | — | |||||||
| Non-marketable equity securities: | |||||||||||
| Strategic investments | $ | 117 | $ | 102 | |||||||
| Equity method investments | 51 | — | |||||||||
| Total non-marketable equity securities | 168 | 102 | |||||||||
| Total investments | $ | 202 | $ | 102 | |||||||
Marketable Securities
For the years ended December 31, 2025, 2024, and 2023, the Company did not recognize any material realized or unrealized gains or losses related to its debt securities. As of December 31, 2025 and 2024, there was no allowance for credit losses related to the Company's debt securities. The weighted-average remaining maturity of the Company's debt securities was less than one year as of December 31, 2025.
Unconsolidated Variable Interest Entities
The Company has entered into various lease agreements with data center developers and operators that are VIEs. The Company does not have the power to direct the activities that most significantly impact the data center developer and operators' economic performance and is not the primary beneficiary. Therefore, the Company has not consolidated the VIEs within the consolidated financial statement. The Company has lease prepayments of $54 million associated with these lease agreements as of December 31, 2025.
Unconsolidated Joint Venture
Additionally, in June 2025, the Company entered into a joint venture (the "JV") with a data center developer and operator to support the acquisition and development of a multi-phase data center campus in New Jersey. Upon formation, the third-party infrastructure developer obtained an 85% equity interest, while the Company holds the remaining 15%, for which the Company contributed net assets worth $57 million. The JV expects to construct and develop the campus using a combination of additional debt and equity capital. The Company provides construction management, administrative and property management services to the JV.
The Company is not the primary beneficiary and does not consolidate the VIE as it does not have the power to direct the activities that most significantly impact the JV's economic performance. Accordingly, the investment in the JV is accounted for as an equity method investment included in other non-current assets on the consolidated balance sheets. The carrying value of the Company's investment in the JV was $51 million as of December 31, 2025, and the Company's share of the earnings and losses of the JV were not material during the year ended December 31, 2025.
The Company also entered into a lease agreement with the JV that commences upon completion of construction. Once commenced, the new lease will have an initial lease term of 15 years with base rent payments that are based on a percentage of construction costs incurred.
The Company's maximum exposure to loss with respect to the JV includes (i) the carrying value of the Company's investment, (ii) up to $95 million related to a guarantee for certain contingent consideration payable to a third-party by the JV upon the achievement of certain milestones, (iii) a lease prepayment of $15 million, and (iv) potential requirements to fund the construction and development of the data center campus to the extent the JV is unable to secure third-party financing. Based on current projected development costs and third-party financing secured by the JV as of December 31 2025, the Company estimates that the maximum funding exposure to fund these latter construction and development costs is up to $200 million. The maximum funding exposure is expected to be offset by the increase in fair value of the Company's interest in the JV as a result of such funding.
Assets Measured at Fair Value on a Recurring Basis
The following table presents information about the Company's financial assets and liabilities that are measured at fair value on a recurring basis within the fair value hierarchy as of the end of each reporting period (in millions):
Fair Value Hierarchy | December 31, 2025 | December 31, 2024 | |||||||||||||||
| Financial assets: | |||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||
| Money market funds | Level 1 | $ | — | $ | 2 | ||||||||||||
| Restricted cash and cash equivalents, current | |||||||||||||||||
| Money market funds | Level 1 | — | 24 | ||||||||||||||
| Restricted cash and cash equivalents, non-current | |||||||||||||||||
| Money market funds | Level 1 | — | 57 | ||||||||||||||
| Restricted marketable securities, non-current | |||||||||||||||||
| Certificates of deposit | Level 2 | — | 29 | ||||||||||||||
| Marketable securities, current | |||||||||||||||||
| Commercial paper | Level 2 | 12 | — | ||||||||||||||
| Corporate bonds | Level 2 | 22 | — | ||||||||||||||
| Prepaid expenses and other current assets | |||||||||||||||||
| Foreign exchange forward contracts not designated as accounting hedges | Level 2 | 5 | — | ||||||||||||||
| Other non-current assets | |||||||||||||||||
| Power purchase agreements | Level 3 | 2 | 3 | ||||||||||||||
| Total financial assets | $ | 41 | $ | 115 | |||||||||||||
| Financial liabilities: | |||||||||||||||||
| Other current liabilities | |||||||||||||||||
| Foreign exchange forward contracts not designated as accounting hedges | Level 2 | $ | 4 | $ | — | ||||||||||||
| Contingent consideration | Level 3 | 20 | — | ||||||||||||||
| Derivative and warrant liabilities | |||||||||||||||||
| Interest rate swaps designated as accounting hedges | Level 2 | 1 | — | ||||||||||||||
| Warrant liabilities | Level 3 | — | 200 | ||||||||||||||
| Total financial liabilities | $ | 25 | $ | 200 | |||||||||||||
The notional amounts of the Company's outstanding interest rate swaps and foreign exchange forward contracts were as follows (in millions):
| December 31, 2025 | |||||
| Derivative instruments designated as accounting hedges | |||||
| Interest rate swaps | $ | 319 | |||
| Derivative instruments not designated as accounting hedges | |||||
| Foreign exchange forward contracts | $ | 1,213 | |||
Losses associated with interest rate swaps and foreign exchange forward contracts were not material.
For the year ended December 31, 2025 the amount reclassified out of accumulated other comprehensive loss into earnings was not material. As of December 31, 2025, the amount the Company expects to reclassify out of accumulated other comprehensive loss into earnings within the next twelve months is not material.
The following is a summary of the valuation techniques and key inputs used in the valuation of instruments of Level 3 fair value measurements as of the end of each reporting period.
The Company's valuation of the warrant liabilities utilized the Black-Scholes option-pricing model that relied on the following significant inputs:
| March 21, 2025 | December 31, 2024 | ||||||||||
| Stock price | $ | 41 | $ | 48 | |||||||
| Volatility | 60 | % | 60 | % | |||||||
| Risk-free rate | 4 | % | 4 | % | |||||||
| Dividend yield | — | % | — | % | |||||||
As discussed in Note 11—Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit), the warrant liabilities for the warrants for the Company's Class A common stock were remeasured immediately before modification when modified to equity classified warrants on March 21, 2025.
As discussed in Note 10—Debt, the 2021 Convertible Notes were converted into common stock on September 17, 2024. The following table is a summary of the significant unobservable inputs to value the embedded derivative liability immediately before conversion:
| September 17, 2024 | |||||
| Stock price | $ | 44 | |||
| Discount rate | 12 | % | |||
The following table presents a summary of the changes in the fair value of the Company's Level 3 financial instruments (in millions):
| Warrant Assets | Power Purchase Agreements – Asset | Contingent Consideration | Warrant Liabilities | Bifurcated Embedded Derivative Liabilities | Series B Tranche Liability | ||||||||||||||||||||||||||||||
| Balance at January 1, 2024 | $ | — | $ | 1 | $ | — | $ | 71 | $ | 386 | $ | 70 | |||||||||||||||||||||||
Additions | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Adjustment to fair value | — | 2 | — | 129 | 627 | — | |||||||||||||||||||||||||||||
Settlements | — | — | — | — | (1,013) | (70) | |||||||||||||||||||||||||||||
| Balance at December 31, 2024 | — | 3 | — | 200 | — | — | |||||||||||||||||||||||||||||
Additions | 222 | — | 20 | — | — | — | |||||||||||||||||||||||||||||
Adjustment to fair value | 32 | (1) | — | (27) | — | — | |||||||||||||||||||||||||||||
| Sales | (254) | — | — | — | — | — | |||||||||||||||||||||||||||||
Reclassification | — | — | — | (173) | — | — | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | — | $ | 2 | $ | 20 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Notes Receivable
Notes receivable are primarily related to the DCSP Financing Arrangements (as defined in Note 10—Debt) and are reported at their amortized costs basis. As of December 31, 2025 and 2024, the Company determined that the fair values of its notes receivable approximate the carrying values.
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.