TLDR
- CoreWeave, formerly a crypto mining company, has filed for IPO with a potential $35 billion valuation, working with major underwriters Morgan Stanley, Goldman Sachs, and JPMorgan
- The company reported $1.9 billion in revenue for 2024, a 737% increase from 2023, but also recorded an $863.4 million net loss
- Recent quarterly results show $747.4 million in revenue with 76% gross margin and $112.7 million in operating income
- The company has $15.1 billion in unfulfilled contracts but faces concerns about GPU market oversupply
- Founded in 2017 as Atlantic Crypto, CoreWeave pivoted from Ethereum mining to AI infrastructure in 2019
CoreWeave, a company that transformed from a cryptocurrency mining operation to an AI infrastructure provider, has filed for an initial public offering (IPO) with an expected valuation of $35 billion. The company submitted its S-1 registration filing to the Securities and Exchange Commission on Monday.
Morgan Stanley, Goldman Sachs, and JPMorgan are serving as the lead underwriters for the offering. This marks a major milestone for the New Jersey-based company that began its journey in the crypto space.
The financial data revealed in the filing shows CoreWeave’s rapid growth. The company reported revenue of $1.9 billion for fiscal year 2024, representing a 737% increase compared to 2023.
Recent quarterly performance indicates strong momentum. CoreWeave recorded $747.4 million in revenue with a 76% gross margin and $112.7 million in operating income.
However, the company faces some challenges. CoreWeave reported an $863.4 million net loss, which it attributes to heavy infrastructure investments and interest expenses on nearly $8 billion in debt.
The company’s future revenue stream appears stable. CoreWeave disclosed $15.1 billion in unfulfilled contract obligations, suggesting a strong pipeline of future business.
The Pivot
The story of CoreWeave began in 2017. Three former commodities traders – Michael Intrator, Brian Venturo, and Brannin McBee – founded the company under the name Atlantic Crypto.
Initially, the company focused on mining Ethereum. In 2019, the founders made a strategic decision to pivot towards AI infrastructure.
This pivot proved timely. The release of OpenAI’s ChatGPT in 2022 sparked increased demand for AI computing resources, positioning CoreWeave to benefit from the industry boom.
The company’s leadership structure remains concentrated. According to the filing, CEO Michael Intrator controls approximately 38% of voting power.
Some industry observers have expressed concerns about the company’s future. Jeffrey Emanuel, founder and CEO of Pastel Network, pointed out potential risks related to GPU oversupply.
CoreWeave has not publicly responded to these concerns. The company declined to comment when contacted about the market oversupply scenario.
The IPO filing reveals CoreWeave’s market strategy. CEO Intrator identified a gap in the cloud provider market, noting in a 2021 blog post that traditional providers offered limited compute options at high prices.
The company’s transformation from crypto mining to AI infrastructure represents a major shift. This change allowed CoreWeave to tap into the growing demand for AI computing resources.
The timing of CoreWeave’s IPO filing comes during a period of increased interest in AI technology. The company aims to capitalize on this momentum as it moves toward becoming a public company.
