Catenaa, Monday, July 21, 2025- CoreWeave stock rose more than 4%% on Monday morning after the renter of artificial intelligence data centers said it plans to sell $1.5 billion worth of bonds.
The company said in a release that the notes, due in 2031, will use the capital for general purposes, such as paying off debt.
Initial price talk for the junk bond is for a yield in the low-9% range, according to a person familiar with the matter. JPMorgan Chase & Co. is leading the deal, which is expected to price on Tuesday.
In May, the company announced a $2 billion debt offering plan that sent shares soaring 19%, where the debt was five times oversubscribed. Last week, shares rallied after the company announced a $6 billion AI data center project in Pennsylvania.
CoreWeave, whose biggest clients include Nvidia and Microsoft, has seen its stock up by over 226% so far this year, but has been down by 30% since June 23.
In its IPO prospectus filing, CoreWeave said that it was “one of the largest private debt financings in history and signals the confidence that debt investors have in funding our company to build and scale the next generation AI cloud.”
Some investors have raised concerns about the company’s debt and the sustainability of demand for its products. In May, CEO Michael Intrator defended CoreWeave’s spending plans and said it is meeting major client “demand signals.”
