CRWV Stock Rebounds From 1-Month Low — Cathie Wood’s ARK Bets $19M As Retail Favors CoreWeave Over Nebius

ARK Investment Management bought 239,083 CoreWeave shares across ARKK and ARKW, worth about $19.1 million based on Thursday’s close.

• CoreWeave proposed $3 billion of convertible notes, with an option that could increase the offering to $3.5 billion.
• The company also launched an at-the-market program allowing it to sell up to 35 million Class A shares.
• CoreWeave signed short-term compute contracts at pricing equivalent to $40 million in annualized revenue per megawatt.

Shares of CoreWeave (CRWV) rebounded over 1% overnight heading into Friday after hitting their lowest level in over a month as Cathie Wood’s ARK Investment Management bought nearly 240,000 shares amid the AI cloud provider’s sweeping capital-raising push.

CRWV stock fell 4% on Thursday and has declined 10% this week, putting it on track to snap a two-week winning streak. 

Cathie Wood’s ARK Pounces On CRWV Selloff 

ARK Investment Management purchased 239,083 CoreWeave shares across the ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) on Thursday.

The ARK Innovation ETF (ARKK) bought 191,868 shares, while the ARK Next Generation Internet ETF (ARKW) added 47,215. Based on CoreWeave’s last close, the combined purchase was worth about $19.1 million. 

CoreWeave Unveils Sweeping Funding Blitz

CoreWeave announced plans on Thursday to privately offer $3 billion of convertible senior notes due in 2033. Initial purchasers will have an option to buy another $500 million, potentially lifting the offering to $3.5 billion. The notes may eventually be converted into cash, CoreWeave shares, or a combination of both. The interest rate and conversion terms will be set when the offering is priced.

CoreWeave plans to spend part of the proceeds on capped-call transactions designed to limit potential share dilution or offset cash payments above the notes’ principal value. The remaining proceeds will be used for general corporate purposes.

The company also established an at-the-market program allowing it to sell as many as 35 million Class A shares over time. CoreWeave said the program would provide financing flexibility and support its goal of moving its credit profile toward investment grade. 

CoreWeave’s AI Demand Boom 

CoreWeave said it continued signing three- to six-month computing contracts at higher prices, equivalent to roughly $40 million in annualized revenue per megawatt. It also added over $25 billion in customer commitments early in the third quarter, while contracted power rose from 3.7 gigawatts to 4.2 gigawatts by Aug. 11.

Rosenblatt said CoreWeave was using this strength to raise about $6.3 billion and maintained its ‘Buy’ rating with a $250 target, implying a 15% upside from current levels. “Driving every investable dollar into that equation makes perfect sense,” the firm said, citing $47 billion of GPU spending supporting $40 billion in annualized short-term contract revenue.

Pricing is strengthening across the sector: Nebius will raise rates on certain GPU, CPU and memory resources from Oct.1, including Nvidia H100, H200, B200 and B300 instances.

How Do Retail Traders Feel About CRWV?

On Stocktwits, retail sentiment for CRWV jumped to ‘extremely bullish’ from ‘bearish’ levels a day ago amid ‘extremely high’ message volume. Watchers for the ticker have jumped 75% over the past year, indicating strong retail interest in the stock. 

Despite CoreWeave’s stock offering and the resulting stock drop, 41% of 966 respondents in a Stocktwits poll preferred CRWV. NBIS drew 35% after Nebius raised GPU prices, while 11% chose both stocks and 13% wanted neither. 

CRWV stock has declined 34% over the past year. 

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