CoreWeave to Raise $2B via Convertible Notes to Scale AI
AI infrastructure provider CoreWeave (CRWV) said Monday it intends to raise $2 billion through a private sale of convertible senior notes due 2031, with proceeds designated for general corporate purposes and for capped-call transactions designed to curb potential dilution.
The offering includes an option for initial purchasers to acquire up to an additional $300 million of notes. CoreWeave noted the securities may be settled in cash, shares, or a combination thereof at the company’s discretion. The capped-call arrangements are expected to increase the effective conversion price and help protect existing shareholders while maintaining financial flexibility.
Founded in 2017 as Atlantic Crypto, the company initially used GPUs to mine Ether (ETH) before shifting in 2019 to cloud and high-performance computing services, ultimately reorienting its GPU infrastructure toward AI workloads. CoreWeave now operates a network of AI-focused data centers and reported running more than 33 facilities as of this year. The company has not indicated whether proceeds from the notes will be used to expand that footprint.
CoreWeave’s unsuccessful acquisition attempt of Core Scientific
While CoreWeave has de-emphasized digital asset mining as its core business, it recently sought to acquire Core Scientific, a major Bitcoin (BTC) mining operator, in a transaction valued at $9 billion. The proposal did not proceed after Core Scientific shareholders voted against it.
CoreWeave said the acquisition was intended to secure access to approximately 1.3 gigawatts of power capacity across Core Scientific’s facilities, which it could deploy for AI, cloud computing, or other GPU-intensive workloads. The company pursued Core Scientific for more than a year, beginning with an initial offer in June 2024 that was rejected. As Core Scientific’s share price climbed, the price required to reach an agreement also rose, a factor that contributed to the final proposal being voted down by shareholders.
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