08/21/2025
For Portfolio II, IV
CoreWeave Inc (CRWV), Core Scientific Inc (CORZ)
Close the position for Core Scientific in Portfolio II & IV
Valuation gap reversed
In the past months, the price of CoreWeave has declined significantly and the valuation gap between CRWV and CORZ has reversed. The price of CORZ is actually about 17% higher than CRWV as today regarding their stock exchange ratio of CORZ to CRWV (1:0.1235) upon company merge. The price of CORZ is $13.58 per share at the time of 11:27 am on 8/21/2025, and the price of CRWV is $93.40. Therefore, the price of CRWV will be $93.40*0.1235=$11.53 per share for CORZ.
This is the reason to close the position of CORZ and to replace it with CRWV or hold cash.
Also, there are two catalysts which may reverse the gaps again which will make the price of two companies to match the ratio of 0.1235. The first, company merge will likely be completed than not. The second, institutional investors is emerged as buyer of the common shares of CoreWeave. However, that is a high probability of reasoning and the most important factor is still the business performance of CoreWeave.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
08/15/2025
For Portfolio II, IV
CoreWeave Inc (CRWV), Core Scientific Inc (CORZ)
Hold the position for CoreWeave and Core Scientific in Portfolio II & IV
Long term investment
For CoreWeave and Core Scientific:
Business performance from CoreWeave is satisfactory, especially revenue and cashflow from operation. Quarterly increasement for revenue and cashflow operation is outstanding and revenue backlog is adequate. Holding current position for CoreWeave and Core Scientific is ideal as long as the performance and trajectory of revenue and cashflow from operation remain intact and revenue backlog is adequate.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
Concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.
07/26/2025
For Portfolio II, IV
CoreWeave Inc (CRWV), Core Scientific Inc (CORZ)
Additional 2% investment for CoreWeave in Portfolio II & IV
Core Scientific Inc is an alternative for investing in CoreWeave Inc.
Looking for a long term investment
Headwind for CoreWeave:
Great competition from giant data center operators as Microsoft, Oracle, Alphabet, Amazon invest heavily in their AI infrastructures. CoreWeave will become once-hopeful Moderna Inc (MRNA) if it fails to achieve scale, to have huge base of clients, and to continue to grow its revenue.
Huge of debt. CoreWeave has $8.7 billion of debt and accumulates extra $3.75 senior debt at the time of this sentence. Serving the debt payment and interest is huge task. Again, CoreWeave needs to generate enough of revenue to serve the debt and support business growth.
Booking more backlog revenue. CoreWeave has concentrated huge contracts now to support revenue until 2029 from significant customers. So far, Microsoft will remain as a customer until 2029 and CoreWeave has to find enough revenue stream to fill up the gap when Microsoft's contract end.
Tailwind for CoreWeave:
Global integration of AI development. The significance of AI is that AI can be catered to a specific purpose function and become a helping tool. Therefore, it is going to create lots of AI lab and development companies.
NVIDIA's helps
The OpenAI's dispute with Microsoft
The competition between Meta and Amazon in AI development
Investing Core Scientific as an alternative to CoreWeave because of acquisition. This acquisition still needs the regulatory approval and approval from Core Scientific shareholders.
No research done for Core Scientific.
Again, concentration investing involves higher risk of significant loss without the protection of diversity.
Each individual investor should always consider their own investment goal, risk tolerance, investing span and objectives for their investment positions. Investing in securities involved the risk of total losses. Investors should always consult with financial professionals.