CoreWeave Announces $3 Billion Convertible Notes Offering
CoreWeave announced a private offering of convertible senior notes due in 2033, aiming to raise up to $3 billion. The company also granted initial purchasers an option to buy additional $500 million worth of notes. These unsecured obligations will pay interest semi-annually and may be converted into cash or Class A common stock at the discretion of CoreWeave. The proceeds from this offering are expected to partially fund capped call transactions, which aim to mitigate dilution for shareholders if conversions occur. The remaining funds will support general corporate purposes. In parallel, CoreWeave filed an equity distribution agreement with major banks like Deutsche Bank and Goldman Sachs, allowing it to sell up to 35 million shares of Class A common stock via at-the-market offerings. CoreWeave's share price dropped more than 2% before the market opened on Thursday despite a year-to-date gain exceeding 16%. The company has also expanded its contracted power capacity and reported significant revenue backlog, indicating strong demand for its compute services.
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