CoreWeave rises after boosted $3.7 bln convertible debt sale
CRWV•Recent business updates
The company also said earlier on Thursday that in the third quarter it signed short-dated customer contracts for compute capacity priced at about $40 million per megawatt on an annualized basis, and that it increased contracted power to about 4.2 gigawatts as of Aug. 11 from approximately 3.7 GW at the end of June.
At Thursday's close, CRWV stock was up about 12% year to date.
The average rating of 40 analysts is "buy"; the median price target is $150, according to LSEG.
Use of proceeds and recent financing plans
CRWV stock finished down about 4% on Thursday after the company launched the convertible bonds for general corporate purposes and said it plans to sell up to 35 million shares in an "at-the-market" (ATM) offering program, as part of its effort to move toward an investment-grade credit profile.
At current stock price levels, the ATM program could raise another $2.8 billion.
CRWV intends to use approximately $498.8 million of net proceeds from the convertible bonds to fund the cost of capped call transactions; the cap price of $199.70 represents a 150% premium over the stock's last close.
Shares rise after upsized convertible offering
Shares of AI cloud provider CoreWeave CRWV.O were up 0.9% at $80.60 in premarket trading on Friday after an above-target convertible offering.
CRWV announced pricing for a private offering of $3.7 billion of 2.875% convertible bonds due April 1, 2033.
