CoreWeave stock climbs after company announces $1.5 billion bond sale
The company said in a release that the notes, due in 2031, will use the capital for general purposes, such as paying off debt.
In May, the company announced a $2 billion debt offering plan that sent shares soaring 19%. At the time, CNBC confirmed that 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 more than tripled in share price since its March debut on the Nasdaq.
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."
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