Nvidia’s golden child, CoreWeave: its three co-founders have cashed out a combined $3.3 billion since the company went public last March, while its share price has fallen more than 60% from its peak. What it does isn’t complicated: it buys a pile of GPUs, rents out the computing power, and collects the fees. Nvidia itself is also a shareholder.
The turning point came on October 15, when Jensen Huang went to Stockholm and publicly backed the company, saying CoreWeave’s finances were improving and its financing costs were coming down, and that it didn’t need Nvidia to bail it out. After he spoke, the stock recovered from its morning losses and closed higher. But the bond market told a different story: yields on the company’s bonds due in 2031 briefly surged to 16%, and its debt on the books is close to $50 billion—more than its market capitalization. Some investors are jumping in to buy the stock on a rebound, while the bond market is demanding double-digit interest. I still can’t figure out which of these two prices to trust.
The three founders are still among the company’s six largest shareholders, with a combined stake of about 20%. The company says the sales were part of personal financial plans arranged in advance and previously disclosed.
The turning point came on October 15, when Jensen Huang went to Stockholm and publicly backed the company, saying CoreWeave’s finances were improving and its financing costs were coming down, and that it didn’t need Nvidia to bail it out. After he spoke, the stock recovered from its morning losses and closed higher. But the bond market told a different story: yields on the company’s bonds due in 2031 briefly surged to 16%, and its debt on the books is close to $50 billion—more than its market capitalization. Some investors are jumping in to buy the stock on a rebound, while the bond market is demanding double-digit interest. I still can’t figure out which of these two prices to trust.
The three founders are still among the company’s six largest shareholders, with a combined stake of about 20%. The company says the sales were part of personal financial plans arranged in advance and previously disclosed.