By Christine Ji
Shares of the cloud-computing company fall sharply as top executives, including the CEO and its largest shareholder, Magnetar Financial, sell millions in stock following a lockup expiration
Some of CoreWeave’s top executives and shareholders, including CEO Michael Intrator, are selling off parts of their holdings.
There’s been a flurry of insider selling after CoreWeave Inc.’s lockup period expired in August, and it sent the cloud-computing company’s stock tumbling on Tuesday.
Last week, CoreWeave (CRWV) executives including Chief Executive Michael Intrator and Chief Financial Officer Agrawal Nitin, as well as the company’s biggest shareholder, Magnetar Financial, sold shares in the company. For much of CoreWeave’s time as a public company, during which the stock saw significant gains, those insiders had been restricted from selling shares.
According to SEC filings, Magnetar Financial and its subsidiaries sold $94.4 million, or 915,339 shares, of CoreWeave on Aug. 28. The hedge fund also opened a collar options position on the stock, purchasing put options with a strike price of $70 and writing covered call options with a strike price of $175. By doing so, Magnetar locked in a minimum sale price of $70 and a maximum sale price of $175, hedging its exposure to large price fluctuations until the options expiry date of March 20, 2026.
Previously, the hedge fund also trimmed its CoreWeave position on Aug. 18 and 20, selling a total of 1,465,064 shares on those dates.
Last week, Intrator sold around $7.8 million, or 82,455 shares, of CoreWeave stock. Nitin sold roughly $335,164, or 3,512 shares. And Kristen McVeety, CoreWeave’s corporate secretary, exited her entire direct stake in the company of 311,796 shares for roughly $30 million, though she still owns 95,000 shares indirectly through a trust.
The stock closed at $93.54 on Tuesday, down 9%.
Also read: CoreWeave’s lockup is about to expire. What that could mean for the stock.
Analysts were anticipating price volatility as CoreWeave’s lockup period expired, as the company’s IPO prospectus showed that 84% of shares were held by insiders. Melius Research’s Ben Reitzes was one of them, though he said in August that he thought the long-term outlook for the stock was positive.
Separately, some investors have been wondering if CoreWeave’s stock, which hit an all-time high of $187 back in June, is worth the hype. The latest selloff carries the stock further off its highs, as shares have roughly halved since peaking in June, and they’ve dropped around 38% since the company’s second-quarter earnings report on Aug. 12, when management announced a steeper loss than analysts were expecting.
The stock’s downward trend also has implications for CoreWeave’s planned all-stock acquisition of digital infrastructure provider Core Scientific Inc. (CORZ). The terms of the agreement stipulate that current holders of Core Scientific stock will receive 0.1235 newly issued CoreWeave shares for every Core Scientific share, valuing the deal at roughly $9 billion when it was announced in July.
At the time, CoreWeave’s stock was trading at $159.70, meaning Core Scientific shareholders would have received $19.72 per share if that price held. At the current trading price, Core Scientific shareholders would only receive $11.53 per share.
Read on: CoreWeave’s stock has slumped. Here’s how the company can prove the bears wrong.
-Christine Ji
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09-02-25 1721ET
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