Thanks a lot for this, though I doubt this will change the mind of the tin foil hat crew.
One question that remains for me is the following statement:
"On August 21, 2023, our Board of Directors approved an increase to our share repurchase program of an additional $25.00 billion, without expiration. From July 31, 2023 through August 24, 2023, we repurchased 2 million shares for $998 million pursuant to a Rule 10b5-1 trading plan. As of August 24, 2023, a total of $27.95 billion was available for repurchase."
Did they really toptick their shares at $499 for the entire period? Think what I might be missing here is
1) there is some rounding error included in the '2 millions shares' total (e.g. if it is actually 2.15 million shares the average drops to $464). I haven't been able to find exact numbers though.
2) that the program was only renewed on the 21st, so it's only 4 days (but then they drove repurchases really hard in the few days before earnings)
Who is Coreweave, and where is their money coming from???
1- Two of CoreWeave founders and executives (CEO & CTO) are hedge fund guys.
2- The third founder is a former prop commodity trader.
3- CoreWeave filed for trademark on October 28, 2021.
4- November 2021: Two weeks after the filing, Magnetar Capital invested $50 million in Coreweave. The PR release also unveiled that CoreWeave was NVIDIA’s first Elite Cloud Service Provider. Remember, they hadn’t existed two weeks earlier!
5- December 2022 – Six days after ChatGPT was announced, CoreWeave raised another $100 million from Magnetar Capital.
6- April 2023 – CoreWeave raised another $221 million in series B led by Magnetar, with NVIDIA participating. CoreWeave now has a value of $2 billion pre-money.
7- May 2023 – CoreWeave secures a $200 million series B extension from Magnetar Capital.
8- August 8th, 2023 – CoreWeave raises $2.3 billion in debt collateralised by NVIDIA chips, 100% of their previous valuation! Magnetar Capital leads the raise again. Every big player in Wall Street has participated in this debt raise.
9- August 30th, 2023 – CoreWeave seeks stake sale at up to $8 billion valuation.
This is great analysis. The tin foil hat theories are way too much fun. Sad but reality is always a bit more prosaic. As you say, manufacturing revenue for a product with ‘infinite demand’ does not make sense. The fraud will come (it is written!) when that demand is no longer infinite but there is still a tonne of SBC to protect....
Thanks for the info.
This is next level analysis and I was wondering if you could do my 2023 taxes.
Thanks a lot for this, though I doubt this will change the mind of the tin foil hat crew.
One question that remains for me is the following statement:
"On August 21, 2023, our Board of Directors approved an increase to our share repurchase program of an additional $25.00 billion, without expiration. From July 31, 2023 through August 24, 2023, we repurchased 2 million shares for $998 million pursuant to a Rule 10b5-1 trading plan. As of August 24, 2023, a total of $27.95 billion was available for repurchase."
Did they really toptick their shares at $499 for the entire period? Think what I might be missing here is
1) there is some rounding error included in the '2 millions shares' total (e.g. if it is actually 2.15 million shares the average drops to $464). I haven't been able to find exact numbers though.
2) that the program was only renewed on the 21st, so it's only 4 days (but then they drove repurchases really hard in the few days before earnings)
Thanks a lot!
Who is Coreweave, and where is their money coming from???
1- Two of CoreWeave founders and executives (CEO & CTO) are hedge fund guys.
2- The third founder is a former prop commodity trader.
3- CoreWeave filed for trademark on October 28, 2021.
4- November 2021: Two weeks after the filing, Magnetar Capital invested $50 million in Coreweave. The PR release also unveiled that CoreWeave was NVIDIA’s first Elite Cloud Service Provider. Remember, they hadn’t existed two weeks earlier!
5- December 2022 – Six days after ChatGPT was announced, CoreWeave raised another $100 million from Magnetar Capital.
6- April 2023 – CoreWeave raised another $221 million in series B led by Magnetar, with NVIDIA participating. CoreWeave now has a value of $2 billion pre-money.
7- May 2023 – CoreWeave secures a $200 million series B extension from Magnetar Capital.
8- August 8th, 2023 – CoreWeave raises $2.3 billion in debt collateralised by NVIDIA chips, 100% of their previous valuation! Magnetar Capital leads the raise again. Every big player in Wall Street has participated in this debt raise.
9- August 30th, 2023 – CoreWeave seeks stake sale at up to $8 billion valuation.
This is great analysis. The tin foil hat theories are way too much fun. Sad but reality is always a bit more prosaic. As you say, manufacturing revenue for a product with ‘infinite demand’ does not make sense. The fraud will come (it is written!) when that demand is no longer infinite but there is still a tonne of SBC to protect....