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 converted into common stock.
The convertible debt offering could increase to $2.3 billion if the $300 million underwriter greenshoe option is exercised in full.
Although prices have 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 the long-awaited IPO in March, CRWV rallied to nearly $200 over the summer. The stock has struggled since, down about 50% over the past six months and currently trading at $81.
CoreWeave lowered its full-year guidance in its latest 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.
