CoreWeave launches $3 billion convertible debt sale
CRWV•Broader funding and contract context
- The ATM program, managed by Deutsche Bank, Goldman Sachs, J.P. Morgan and others, is part of CoreWeave's effort to move toward an investment-grade credit profile.
- In the third quarter, CoreWeave said it signed short-term customer contracts for compute capacity priced at about $40 million per megawatt on an annualized basis. It increased contracted power to about 4.2 gigawatts from 3.7 GW at the end of June.
- In August, the company reported revenue backlog of $104.2 billion in the second quarter, later disclosing more than $25 billion in additional customer commitments signed early in the third quarter.
Convertible debt and stock sale plans
Sept. 17 (Reuters) - Nvidia-backed CoreWeave said on Thursday it plans to raise $3 billion through a convertible debt offering, highlighting the massive funding needs to support the AI infrastructure buildout.
Shares of the neocloud were down more than 3% in early trading. Through the last close, they have gained over 16% so far this year.
Use of proceeds and dilution protection
- Initial buyers of the debt may purchase up to an additional $500 million.
- CoreWeave said it would use some of the money to protect against dilution and the rest would fund its operations.
- It also launched an at-the-market stock sale program for up to 35 million shares, potentially raising about $2.92 billion at Wednesday's closing price, though it will determine whether to sell shares based on market conditions.
