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)
Let me translate. Nvidia is vendor financing and cooking their books. To sell their product that not a single human being has made an actual dime from.
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.
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!
Let me translate. Nvidia is vendor financing and cooking their books. To sell their product that not a single human being has made an actual dime from.
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....