Key Moments
- CoreWeave plans to raise $3 billion via a convertible debt offering, with an option for buyers to add $500 million.
- The company launched an at-the-market stock sale program for up to 35 million shares, potentially generating about $2.92 billion at Wednesday’s close.
- CoreWeave reported revenue backlog of $104.2 billion in the second quarter and more than $25 billion in additional commitments early in the third quarter.
Convertible Debt Offering Targets $3 Billion
Sept 17 (Reuters) – CoreWeave, which is backed by Nvidia, said on Thursday it intends to raise $3 billion through a convertible debt issuance, underscoring the substantial capital required to expand its AI-focused infrastructure.
Initial purchasers of the notes will have the option to buy up to an additional $500 million. CoreWeave stated that part of the proceeds will be allocated to measures intended to mitigate dilution, with the remaining funds directed toward supporting its operations.
Equity Raise Through At-the-Market Program
Alongside the convertible debt deal, CoreWeave unveiled an at-the-market (ATM) equity offering program covering up to 35 million shares. Based on Wednesday’s closing share price, the program could raise approximately $2.92 billion, although the company said any actual share sales will depend on prevailing market conditions.
The ATM program is being managed by Deutsche Bank, Goldman Sachs, J.P. Morgan and other firms. CoreWeave described the initiative as part of its broader strategy to progress toward an investment-grade credit profile.
Market Reaction and Share Performance
Shares of the neocloud company were down more than 2% in premarket trading. Through the last close, the stock had gained over 16% so far this year.
Operational Metrics and Customer Commitments
CoreWeave provided additional detail on recent commercial activity and capacity expansion. In the third quarter, the company said it signed short-term customer agreements for compute capacity priced at about $40 million per megawatt on an annualized basis.
It also increased its contracted power capacity to about 4.2 gigawatts, up from 3.7 GW at the end of June.
In August, CoreWeave reported a revenue backlog of $104.2 billion for the second quarter. The company later disclosed that it had signed more than $25 billion in additional customer commitments early in the third quarter.
Key Financial and Operating Figures
| Item | Detail |
|---|---|
| Convertible debt offering | $3 billion |
| Additional buyer option | Up to $500 million |
| ATM equity program size | Up to 35 million shares |
| Potential ATM proceeds (at Wednesday’s close) | About $2.92 billion |
| Third-quarter short-term contracts | Priced at about $40 million per MW (annualized) |
| Contracted power – latest figure | About 4.2 GW |
| Contracted power – end of June | 3.7 GW |
| Q2 revenue backlog | $104.2 billion |
| Additional customer commitments early Q3 | More than $25 billion |
| Share performance year-to-date (through last close) | Over 16% gain |
| Premarket share move | Down more than 2% |
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