Spotlight Shines on a SuRo Capital Position…And It’s Not the One You Think

Amid all the headlines surrounding the pending SpaceX (SPCX) IPO and confidential IPO filings from Anthropic and OpenAI, other items have likely fallen through the cracks. One of those was the recent funding round for TensorWave, a cloud computing company that uses hardware and software not from Nvidia (NVDA), but from Advanced Micro Devices (AMD). If the name sounds a bit familiar, it should be because it is one of SuRo Capital’s (SSSS) more recent investments.

At the start of the year, SuRo made a $5 million investment in TensorWave through a special purpose vehicle (SPV) created by Magnetar. It’s the same Magnetar that SuRo is forming a joint venture with, Neostellar Advisors, that will serve as an external manager for SuRo’s portfolio. As a reminder, today is the shareholder vote to approve this new structure, and we see SuRo’s TensorWave investment as a great example of how working with Magnetar will expand the company’s deal flow.

Getting back to TensorWave, the $350 million round it just closed values the company at around $1.55 billion compared to around $400 million last year. Given the timing of SuRo’s investment back in January, this should be a positive development for its net asset value per share.

Three things to keep in mind:

First, when SuRo made its initial investment in TensorWave, it did so as part of a larger commitment up to $20 million, subject to certain conditions being satisfied. While those conditions have not been made public as best we can tell, we would not be surprised to see the completed TensorWave capital raise triggering another slug of capital from SuRo.

Second, should today’s shareholder vote pass, and we suspect it will rather easily, Magnetar is expected to make a $20 million investment in SuRo. Paired with the $43.3 million in cash on hand at the end of Q1 2026, less the $9.5 million investment made in ClickHouse subsequent to that quarter-end, SuRo should have in excess of $50 million in cash on hand following the Magnetar investment. We realize that our timing could be off, subject to Magnetar investing that capital and other investments, as well as monetization moves in the SuRo portfolio. The point, however, is that SuRo should have ample capital on hand to make further investments as well as repay the $35.7 million, 6% notes due this December.

Third, should today’s shareholder vote pass, SuRo will rebrand to Neostellar effective July 1. Odds are the SSSS ticker symbol will be changed to NSLR. Mark your calendars accordingly.

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At the time of publication, TheStreet Pro was long NVDA and SSSS.