CoreWeave short sellers face significant borrowing costs, with the real-time spot rate to borrow shares exceeding 190% of the stock price, leading to losses of nearly 30% of profits.

CoreWeave short sellers face 30% of their profits lost due to high borrowing costs, which have held above 100% for the last month. The low float of shares, at 13%, has contributed to the high borrowing fees. However, an estimated 290 million shares will become free to trade after lockup periods expire next month, potentially increasing downward pressure on the stock.

CoreWeave Inc. short sellers are experiencing significant financial pressure due to exorbitant borrowing costs, which have held above 100% for the past month. According to S3 Partners LLC data, shares of the cloud computing provider ended Friday about 31% below their June record high, netting short sellers a paper profit of roughly $700 million. However, nearly a third of those gains will be eaten away by stock borrowing costs [1].

The real-time spot rate to borrow shares of CoreWeave to sell short was more than 190% of the stock’s price of about $133 on Monday. This high borrowing cost is largely due to CoreWeave's low float, which stands at about 13% compared to the average of about 95% for stocks in the S&P 500 Index [1].

The situation is set to change next month when lockup periods expire, allowing an estimated 290 million shares to become free to trade. This significant increase in available shares could add downward pressure on CoreWeave's stock price, potentially exacerbating the challenges faced by short sellers [1].

Additionally, CoreWeave's upcoming quarterly earnings release, expected in mid-August, could provide further insight into the company's financial health and operational performance. Wall Street analysts have been pessimistic on CoreWeave, with most giving it a hold-equivalent rating and an average price target near $105, implying roughly 21% downside from current trading levels [1].

Despite the challenges, CoreWeave's acquisition of Core Scientific Inc. for $9 billion in an all-stock deal presents both opportunities and risks. The acquisition could lead to operational cost savings and a secure future capacity, but it also comes with a high valuation and potential dilution of existing shareholders [2].

In conclusion, CoreWeave short sellers are facing substantial borrowing costs due to the company's low float and high borrowing fees. The upcoming release of additional shares and the upcoming earnings report could further impact the stock's price and the profitability of short positions.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-14/coreweave-short-sellers-see-30-of-profits-lost-on-borrow-costs
[2] https://finance.yahoo.com/news/why-coreweaves-acquisition-core-scientific-072300783.html