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CoreWeave Launches $2 Billion Convertible Notes Offering; Stock Drops on Financing Plan

Investors are bracing for higher leverage, potential dilution and unresolved pricing.

Overview

  • CoreWeave announced a private sale of $2.0 billion in convertible senior notes due December 1, 2031, with a 13‑day option for initial buyers to purchase an additional $300 million.
  • The notes are senior, unsecured obligations guaranteed by subsidiaries and will pay cash interest semiannually, with conversion allowed under specified conditions.
  • Part of the proceeds will fund capped call transactions intended to reduce dilution, with the rest earmarked for general corporate purposes.
  • Shares fell on the news, with outlets reporting declines of roughly 5% to 8% during Monday trading and a 2.3% lower close, reflecting concern over the financing.
  • Final coupon and conversion terms were not disclosed at announcement, though third‑party reports cited preliminary ranges, as investors weighed CoreWeave’s roughly $14 billion debt load and sharply wider CDS spreads.