CoreWeave Stock Plunges on $2.3B Convertible Notes Offering
CoreWeave Inc. (CRWV) shares tumbled nearly 5% to $83.89 following the announcement of a $2 billion convertible senior notes offering, with an additional $300 million option for underwriters. The market reaction reflects concerns over potential equity dilution and increased debt load, as the new notes rank alongside existing senior obligations.
The offering's complex conversion mechanics and associated hedging activity could introduce volatility unrelated to CoreWeave's operational performance. Investors appear to be discounting the company's business fundamentals amid fears about capital structure pressures, with midday trading failing to recover early losses.