Shares of Coreweave (CRWV) fell 8% on Monday after the AI ​​infrastructure company announced plans to borrow $2 billion from investors by issuing debt securities that can be converted into common stock.
The convertible debt offering could reach $2.3 billion if the underwriter’s $300 million repurchase option is fully exercised.
Although pricing has not yet been disclosed, Bloomberg reported that the company is offering 1.5% to 2% interest as well as a 20% to 30% premium on the bonds.
After an initial decline following its highly anticipated IPO in March, CRWV surged to nearly $200 over the summer. The stock has struggled since then, down about 50% over the past six months and currently trading at $81.
CoreWeave lowered its full-year guidance in its last earnings report in October, sparking concerns among investors about its ability to deliver on its growth plans amid execution risks and pressure on AI infrastructure capacity.
