Coreweave’s (CRWV) shares dropped by 8% on Monday following the AI infrastructure firm’s announcement of plans to secure $2 billion from investors through convertible debt.
This debt offering can increase to $2.3 billion if the $300 million underwriter greenshoe option is fully exercised.
While specific pricing details are pending, Bloomberg indicated that the company is proposing an interest rate of 1.5% to 2%, along with a bond premium of 20% to 30%.
After an initial decline post-IPO in March, CRWV nearly reached $200 over the summer. The stock has faced challenges since then, falling approximately 50% over the past six months and currently trading at $81.
CoreWeave has revised its full-year guidance in its latest earnings report from October, raising investor concerns regarding its ability to meet growth targets amid execution challenges and increased pressure on AI infrastructure capacity.
