Shares of Coreweave (CRWV) fell 8% on Monday after the artificial intelligence infrastructure company announced plans to borrow $2 billion from investors by issuing debt that can be converted into common stock.
The convertible debt offering could increase to $2.3 billion if the insurer’s $300 million greenshoe option is exercised in full.
While the price has not yet been revealed, Bloomberg reported that the company is offering between 1.5% and 2% interest, as well as a 20% to 30% premium over the bonds.
After an initial drop following its long-awaited initial public offering in March, CRWV rose to nearly $200 over the summer. The stock has struggled since then, down about 50% in the last six months and currently trading at $81.
CoreWeave lowered its full-year guidance in its most recent earnings report in October, raising concerns among investors about its ability to deliver on growth plans amid execution risks and pressure on AI infrastructure capacity.
