CoreWeave Is Issuing Billions in Debt but Shares Are Up 64%. What’s Going on With CRWV Stock?

CoreWeave (CRWV) recently announced that it plans to offer $1 billion senior notes at 9.75% due 2031. This private offering is expected to be issued separately from the company’s existing $1.75 billion of notes that carry the same terms. The proceeds of this offering will be used for general corporate purposes. 

CoreWeave doesn’t have a shortage of people willing to back the firm. It added $2 billion from Nvidia (NVDA) in January, marking a significant portion of the company’s investment portfolio. When Nvidia CEO Jensen Huang backs a company, investors follow. CRWV stock is up 64% so far this year, and it is not just Nvidia’s dollars that are inspiring the confidence. On a podcast with Dwarkesh Patel on April 15, Huang pointed out that CoreWeave was a product of Nvidia's ecosystem, one that it spent years perfecting.