CoreWeave (CRWV) priced its initial public offering at $40 per share, below its earlier midpoint estimate of $51, raising $1.5 billion through the sale of 37.5 million shares.
The offering includes 36.59 million shares of Class A common stock from the company and 910,000 shares from existing shareholders. A 30-day option has been granted to underwriters to purchase an additional 5.63 million shares.
The AI infrastructure firm's stock is set to debut Friday on the Nasdaq under the symbol CRWV. The IPO values the company at roughly $20 billion, a figure reduced from its initial $2.4 billion fundraising projection due to market conditions and investor sentiment, according to Bloomberg.
Nvidia (NASDAQ:NVDA), an existing backer with a prior 6% stake in CoreWeave, is reportedly purchasing $250 million in shares at the IPO price. Microsoft (NASDAQ:MSFT) accounted for 62% of CoreWeave's $1.92 billion in 2024 revenue, which marked a 700% year-over-year jump. The company posted a net loss of $863 million for the year and operates 32 data centers using more than 250,000 GPUs.
In a separate development, Galaxy Digital (BRPHF) signed a 15-year agreement to host CoreWeave's infrastructure at its Helios campus in West Texas. The deal is expected to generate $4.5 billion in revenue for Galaxy, which also reported Q4 net income of $174.3 million and revenue of $698.09 million, a 96.4% increase from the prior year.
CoreWeave competes with cloud providers including Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN).
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