CoreWeave announced a $2 billion offering of convertible notes
CoreWeave Inc (NASDAQ:CRWV) stock is dropping today, down 8.5% at $80.80 at last glance, after the AI cloud-computing company announced a $2 billion convertible debt offering. The company will also allow initial purchasers to buy an extra $300 million in notes.
On the charts, CRWV has been slowly climbing since its Nov. 21, six-month low of $65.22, recently breaking back above the 10- and 20-day moving averages. Publicly traded since late March, the equity is down 20.3% since the start of this quarter.
Notably, short interest added 25.7% in just the last two weeks, and now represents 10.5% of the stock's available float. It would take shorts over one day to cover, at CRWV's average pace of trading.
Options look like a good way to weigh in on CoreWeave stock. The security's Schaeffer's Volatility Index (SVI) of 87% sits in the 1st percentile of its annual range, meaning options traders are pricing in low volatility expectations.