CoreWeave Stock Falls 8% on $2B Convertible Debt Offering

What to know:

• CoreWeave shares fell 8% after the company announced plans to raise $2 billion through a private convertible debt offering.
• The notes, due in 2031, may offer 1.5% to 2% interest and a 20% to 30% premium.
• Shares have struggled since their post-IPO surge, down about 50% over the past six months.

Shares of Coreweave (CRWV) fell 8% on Monday after the AI infrastructure company announced plans to borrow $2 billion from investors by issuing debt that can be turned into common stock.

The convertible debt offering could rise to $2.3 billion if the $300 million underwriter greenshoe option is exercised in full.

While pricing hasn't yet been disclosed, Bloomberg reported the company is offering 1.5% to 2% interest as well as a 20% to 30% premium on the bonds.

After an initial dip following its hotly-anticipated IPO in March, CRWV surged to nearly $200 over the summer. The stock's struggled since, down about 50% over the past six months and trading at $81 currently.

CoreWeave lowered its full-year guidance at 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.