CoreWeave just dropped a bombshell—they're planning to raise $2 billion through convertible debt. And the market? Not impressed. Shares took a hit right after the announcement.

Convertible bonds are always a mixed bag. Sure, it's capital without immediate dilution, but investors know what's coming. When those bonds convert to equity down the line, existing shareholders get squeezed. The Street clearly sees this as a signal: maybe the cash burn is heavier than expected, or growth projections aren't panning out as smoothly.

For a company riding the AI infrastructure wave, this financing move raises eyebrows. Is the AI compute demand plateauing? Or are they just being opportunistic with rates? Either way, the stock's reaction tells you everything—Wall Street wants growth funded by revenue, not by adding $2B to the cap table through the back door.