CoreWeave launches $3 billion convertible debt sale

Nvidia-backed CoreWeave announced on Thursday plans to raise $3 billion through a convertible debt offering, underscoring the extensive funding required to expand its AI infrastructure. The company's shares experienced a decline of over 2% in premarket trading, having already surged more than 16% this year. CoreWeave intends to offer up to an additional $500 million to initial buyers. The remainder of the funds will be utilized to shield against dilution and to sustain its operations.

Additionally, the company initiated an at-the-market stock sale program, which could yield up to 35 million shares, potentially raising approximately $2.92 billion at the closing price on Wednesday. The deal, overseen by Deutsche Bank, Goldman Sachs, J.P. Morgan, and other financial institutions, is an integral part of CoreWeave's strategy to attain an investment-grade credit rating.

In the third quarter, CoreWeave signed short-term contracts with customers for compute capacity priced at around $40 million per megawatt annually. The company's power consumption had risen to approximately 4.2 gigawatts from 3.7 GW by the end of June. In Q2, CoreWeave reported a revenue backlog of $104.2 billion and disclosed more than $25 billion in additional customer commitments signed early in the third quarter.