CoreWeave mostly holds older GPUs, and book value can't justify its valuation
ivan_bezdomny · x · 2026-10-14
The author argues that asking ChatGPT for a company's book value yields a very low number—but for CoreWeave, a thin-margin company holding depreciating legacy assets, prior valuations were too high. Part of the earlier premium came from GPUs holding resale value well beyond their accounting depreciation schedule. The catch: CoreWeave's fleet is mostly older boxes, not the most valued new ones. As asset values fall, the stock crashes and the cost of borrowing rises.
Related event: Analysis Questions CoreWeave's Valuation as It Holds Mostly Older GPUs(2 posts)→
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