CoreWeave announces $2 bln convertible debt offering; shares fall

AI cloud infrastructure provider CoreWeave's CRWV.O shares fall 5.5% to $83.40 premarket

CRWV announces proposed private offering of senior convertible notes worth $2 billion, due 2031

Co intends to use the net proceeds to fund the cost of entering into capped call transactions and general corporate purposes

Capped call transactions are financial contracts that help limit how much the stock gets diluted if debt is converted to equity

16 of 32 brokerages rate stock "buy" or higher, 13 "hold", and 3 "sell"; their median PT is $125.75

CRWV stock up nearly 3% YTD