CoreWeave slumps after filings show top shareholder Magnetar Financial sold over $500 million in stock last week
CoreWeave is sinking after one of its earliest backers and top shareholders, Magnetar Financial, sold over $500 million in stock last week.
Filings released after the close on Friday showed the Illinois-based investment firm, its subsidiaries, and executives dumped $486 million from Wednesday through Friday, while separate statements released last Wednesday revealed $60 million in sales from earlier in the week.
After these divestments, Magnetar and its affiliated parties still own north of 72 million shares of the neocloud company.
Magnetar previously put on what looked to be a massive collar trade that protected the value of its CoreWeave position through mid-March of next year by selling calls with strike prices of $160 and $175 and buying put options with a strike price of $70. There were no derivative transactions reported along with any of last week’s sales.
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. Synderman was among the Magnetar-affiliated parties that reduced their positions last week.
