The Cro Capital Report

Good morning, and welcome to this special edition of The Cro Capital Report. In this report, we will spotlight a historic turning point for U.S. nuclear energy policy, the structural drivers behind our uranium thesis, and the surge in upstream equities driving our portfolio strategy.

In our last post on Friday, we highlighted our bullish stance on uranium as the central feature. Since the writing of that post, the uranium industry has had a significant positive development which has driven a ~12% to 26% surge in the uranium equities Cro Capital and its partners are invested in. In this follow-up, we’ll dive deeper into the structural drivers behind our thesis and the historic policy developments that are accelerating this trend. 

The problem has become clear: nuclear power generates approximately 19% of the United States' electricity, supplying one in every five homes, yet the nation remains overwhelmingly dependent on foreign uranium. According to the U.S. Energy Information Administration, in 2023, U.S. nuclear utilities imported 99% of the uranium they used, purchasing 32 million pounds from foreign sources while obtaining only 50 thousand pounds from domestic producers. With 93 operable reactors relying almost entirely on imported fuel, this dependence presents serious risks to energy security and supply chain resilience. This supply chain vulnerability has shaped the core of our thesis: America must re-shore and rebuild its upstream nuclear fuel infrastructure—from exploration and mining to conversion and enrichment.

That is why we are delighted that on May 23, 2025, the current administration signed a landmark executive order outlining a comprehensive plan to revitalize the United States’ nuclear energy sector. The order directly targets the weakest link in America’s nuclear power ecosystem: the upstream fuel cycle. Specifically, uranium mining, conversion, enrichment, and fuel fabrication. The national policy includes:

• Expanding uranium conversion and enrichment capacity for civilian and defense use.

• Prioritizing recycling and reprocessing of spent nuclear fuel.

• Using the Defense Production Act which grants the President broad authority to take action to ensure domestic industries can meet national defense requirements

• Transitioning surplus plutonium into usable fuel for advanced reactors.

It is no longer a speculative bet on nuclear energy policy. It has now become a federal directive to reshape the U.S. nuclear power supply chain.

At the same time, the world continues to grapple with its green energy needs for the decarbonization of industries and growing demand for data centers to power generative Artificial Intelligence, or AI. It has become widely understood that without energy, there can be no AI. According to the International Energy Agency, today, “a typical AI-focused data center consumes as much electricity as 100,000 households, but the largest ones under construction today will consume 20 times as much.” That is because AI data centers feed massive datasets to AI models for training and performance purposes, which then requires storage systems to handle the massive amounts of data. 

Further reinforcing Cro Capital’s thesis, on April 15, the current administration signed an executive order launching a Section 232 investigation. This directive tasks the U.S. Department of Commerce with examining the national security risks associated with importing processed critical minerals and their derivative products– including uranium. 

This action follows escalating geopolitical tensions, most notably Russia’s invasion of Ukraine, which has rendered Russia an unreliable trading partner. Critically, Russia currently controls approximately 44% of the world’s uranium enrichment capacity according to the U.S. Department of Energy, underscoring the urgency for the United States to reestablish domestic control over its nuclear fuel supply chain.

Our Position

Cro Capital is strategically invested across the domestic U.S. upstream nuclear value chain, with exposure to key players in uranium mining, conversion, enrichment, and fuel fabrication which are the foundational steps required to power both existing reactors and next-generation advanced nuclear designs.

Our Portfolio Exposure Includes:

• Uranium Exploration & Mining

  • Uranium Energy Corp (UEC): A leading U.S.-based uranium mining and exploration company with a diverse portfolio of assets across the U.S. and Canada. UEC plays a central role in securing domestic uranium supply. 

    • Friday performance: ↑ 25.79%

  • Ur-Energy (URG): Specializes in low-cost in-situ recovery (ISR) uranium mining, operating the Lost Creek and advancing the Shirley Basin projects in Wyoming.

    • Friday performance: ↑ 22.05%

• Uranium Conversion & Enrichment

  • Centrus Energy (LEU): A critical player in the uranium enrichment process, Centrus is pioneering the commercial production of High-Assay Low-Enriched Uranium (HALEU), a crucial fuel form for advanced reactors.

    • Friday performance: ↑ 21.71%

• Fuel Fabrication & Nuclear Component Manufacturing

  • BWX Technologies (BWXT): Supplies nuclear fuel for commercial power plants and manufactures reactors and fuel for U.S. Navy submarines and aircraft carriers. BWXT also produces heavy components for both defense and civilian nuclear infrastructure.

    • Friday performance: ↑ 11.97%

• Sector Performance

  • Global X Uranium ETF (URA): A diversified benchmark for uranium equities, rose 12.13% on the day.

A notable statement from Centrus Energy (Ticker: LEU) in their Q1 results: “Centrus is the only company currently enriching uranium with U.S.-owned, U.S.-origin technology backed by an American supply chain and powered by American workers that can meet national security needs. This is not the time to send hard-earned U.S. taxpayer dollars overseas and reinforce the monopoly of the foreign, state-owned companies that already dominate the market.” Cro Capital couldn’t agree more.

These movements reflect a market repricing of upstream nuclear assets, catalyzed by historic U.S. policy actions and an emerging recognition of nuclear’s pivotal role in both national security and AI-powered energy demand.

*The information provided in The Cro Capital Report is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or an offer to buy or sell any securities. The views expressed are those of Cro Capital and are subject to change at any time without notice. While we strive to ensure accuracy, we make no representations or warranties as to the completeness or reliability of the content. Always do your own research and consult with a licensed financial advisor before making any investment decisions. Investing involves risk, including the potential loss of principal.