CoreWeave drops as top shareholder takes profit by selling nearly 1.5 million shares
Shares of CoreWeave are getting pummeled on Wednesday after filings showed top shareholder Magnetar Financial did what a lot of major investors in the AI cloud computing giant appear to have been doing: taking profits after the post-IPO lockup period expired.
Magnetar, which owns about 25% of the company through various funds and subsidiaries, sold $91.7 million worth of CoreWeave stock on Friday and an additional $55.4 million on Monday, per filings released on Tuesday evening.
That being said, it’s a drop in the bucket: even after selling nearly 1.5 million shares, Magnetar still holds in excess of 94 million. Board member Jack Cogen, on the other hand, sold 4 million shares on Thursday and Friday.
In late March, Magnetar senior managing partner David Snyderman called CoreWeave “the gold standard now for AI infrastructure” and told Bloomberg that the firm had not used the IPO as an opportunity to reduce its stake.
The Illinois-based asset management firm originally invested in CoreWeave back in 2021 via a convertible note, and continued to accumulate a position in the AI cloud computing company through various funding rounds.
