AI infrastructure provider CoreWeave (CRWV) is seeking to raise $2 billion through a private offering of convertible senior notes set to mature in 2031. The funds will be used for general corporate purposes and for capped-call transactions to mitigate potential future shareholder dilution.
The notes offer buyers an additional $300 million option, the company announced on Monday. Settlements can be made in cash, shares, or a combination of both, at CoreWeave’s discretion.
To minimize dilution if the notes convert into equity, CoreWeave is engaging in capped-call transactions. This strategy raises the effective conversion price and offers some protection for existing shareholders while maintaining financial flexibility.
Founded in 2017 as Atlantic Crypto, CoreWeave started with GPU mining of Ether (ETH). As the cryptocurrency market declined, it shifted its focus in 2019 to cloud and high-performance computing services, eventually honing in on AI workloads with its GPU infrastructure.
The company now operates a specialized network of data centers for AI, currently exceeding 33 facilities. It has not disclosed whether the funds from this new offering will be directed towards further expansion.
Related: TeraWulf aims to raise $500M betting on AI as the new Bitcoin
CoreWeave’s failed takeover attempt of Core Scientific
Despite moving away from its original focus on digital asset mining, CoreWeave recently aimed for a $9 billion acquisition of Core Scientific, a major Bitcoin (BTC) mining operator. However, the proposal was rejected by Core Scientific’s shareholders.
The failed takeover sparked speculation about a possible return to crypto, but CoreWeave has framed this effort differently.
The company indicated that the acquisition was intended to secure around 1.3 gigawatts of power capacity from Core Scientific’s locations, which could support future growth in AI, cloud computing, or other GPU-intensive operations.
CoreWeave had pursued Core Scientific for over a year, starting with an initial bid in June 2024 that was turned down. As Core Scientific’s stock value increased, so did the price necessary for a deal, ultimately leading to the proposal’s failure when shareholders voted against it.
Related: Crypto Biz: Mining challenges test Bitcoin’s market cycle
