CoreWeave not Seen Rushing to Raise Capital Through Equity

Dow Jones00:52

1152 ET - CoreWeave may not look to raise capital through equity issuance in the near-term, despite establishing an at-the-market program in September, Truist analysts write in a note. The company needs capital to support its AI data-center buildout and is looking to sources beyond the unsecured debt market, where its bond yields have shot up. Still, market concerns over AI financing and the data-center buildout suggest that CoreWeave may not be in any rush to issue more stock. "We had flagged earlier this year that we would not be surprised to see CRWV tap equity markets given the scale of its financing requirements, although with shares currently at depressed levels on account of the aforementioned market concerns, this may not happen near-term," they write. CoreWeave is up 26% following its earnings, though still down around 25% over the past month.

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