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Crypto miner turned AI provider CoreWeave adds billions in market cap
Regulatory filings show that Nvidia increased its stake in CRWV by the end of the first quarter to 24.2 million shares from 17.9 million shares.
Shares of AI cloud computing company CoreWeave (CRWV) surged on May 16 after chip giant Nvidia revealed a large ownership stake, signaling growing corporate and institutional interest in the newly public company.
CRWV stock climbed as much as 26.3% in New York trading, pushing its market capitalization above $38 billion. Trading volumes were more than double the daily average, according to Yahoo Finance data.
The stock was last seen trading around $81, up 23% on the day.
CoreWeave’s rally was sparked by regulatory filings from Nvidia showing that the company owned $900 million of CRWV stock at the end of the first quarter. The value of the holdings has more than doubled since March 31, assuming Nvidia hasn’t sold any shares since then.
As CNBC reported, Nvidia’s ownership stake at the time of CoreWeave’s initial public offering (IPO) was 17.9 million shares.
CoreWeave’s stock has gained more than 100% from its IPO price of $40 in late March. It has vastly outperformed the Nasdaq Composite Index and broader US stock market over that period.
The Nvidia revelations overshadowed CoreWeave’s fiscal first-quarter earnings report, which showed a 420% surge in revenue but also a 487% spike in operating expenses. The company’s net loss widened by 143% compared to a year earlier. Its stock declined shortly after the financials were released on May 14.