CoreWeave-Related Pressure Brings Nice Pick-Up Point for This Holding
The 2026 IPO market and OpenAI’s rising valuation prospects should keep this story on track.
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Over the last few weeks, renewed questions over the AI trade have weighed on a good number of stocks both in and out of the Pro Portfolio. That includes CoreWeave (CRWV) , which was likely swept up in Oracle (ORCL) -inspired data-center financing questions and implications. As we discussed Thursday, however, many of the other hyperscalers are not in that same net debt balance sheet boat.
We’ve also heard from Blackstone (BX) CEO Stephen Schwarzman that data centers are a "conservative," essential infrastructure for AI growth, not a bubble. While we recognize Schwarzman and Blackstone’s investing acumen, let’s not forget Blackstone is a massive data-center owner.
When you closely associate yourself with a company like CoreWeave, whose shares have been volatile since the IPO, you’re going to see that volatility weigh on your stock as well. In case you’re not following, we’re casually referring to the Pro Portfolio’s position in SuRo Capital (SSSS) .
Given the November and December selloff in CRWV shares, we are not surprised that it weighed on SSSS shares. And while it’s true SuRo still had exposure to CRWV shares at the end of the September quarter, that exposure was smaller than it was when the company reported its September-quarter results on November 4.
Exiting the September quarter, the business development company (BDC) had 83.4% of its investment in the CW Opportunity Fund LP that invested in CoreWeave shares. During the ensuing weeks leading up to SuRo’s earnings report on November 4, SuRo sold more of that interest, which decreased its CoreWeave exposure to ~72% of its investment in CW Opportunity 2 LP. That suggests that SuRo's CRWV position accounted for around 12% of its overall investment portfolio back in early November.
That same portfolio also includes the company’s stake in OpenAI, Canva, Whoop, Plaid, Liquid Death, and Vast Data. More than a few of those have been marked as potential IPO candidates in 2026, which should bring more dividend firepower.
We should also consider that as OpenAI aims to raise more capital with a valuation between $750 billion-$830 billion, SuRo’s September-quarter exposure still reflected OpenAI’s then $300 billion valuation. It’s fair to deduce that initial investment of $17.7 million is worth more than the fair value estimate of $27.7 million time stamped at the end of September. We say that full well knowing OpenAI’s last capital raise, which was completed early in the current quarter, left it with a valuation of $500 billion.
With SuRo shares trading below their net asset value of $9.23 per share exiting September, it could very well see management put to work some of the $25 million remaining under its share repurchase program that ends in October 2026.
And while we will concede we are disappointed at the lack of a true-up dividend payment to end 2025, we would rather see the management team patiently wait and execute its monetization strategies and leave gains on the table.
Recognizing all the above, we see the current share price as a very nice place to pick up more shares if you’re underweight the Pro Portfolio’s 3.68% exposure to SSSS shares.
At the time of publication, TheStreet Pro Portfolio was long SSSS.
