CoreWeave has lost more than 46% of its share price and about $18 billion in market capitalization since joining the Nasdaq 100 on June 22, while company insiders sold roughly $740 million worth of stock over the same stretch, according to Protos.
Insider selling continued as the stock fell
Protos reported that CoreWeave CEO Mike Intrator sold about $85 million worth of stock between September 15 and September 30. Those shares have since lost more than a quarter of their value.
The report lists several other sales by senior executives. CFO Nitin Agrawal sold stock at about $80 a share on Monday. CRO Jonathan Jones sold at about $77 on Tuesday. One day later, CoreWeave shares fell 15%, while the company’s cost to borrow on its 2032 bonds climbed to 15% annually.
On September 8, general counsel Kristen McVeety sold 97,500 shares near $94, bringing in $9 million. On August 17, co-founder Brannin McBee sold 250,000 shares at about $106, raising $27 million. This week, McBee told the Financial Times that CoreWeave is looking to borrow more money.
The CEO kept selling a regular block as proceeds shrank
Although Intrator has been selling a regular weekly block of about 307,700 shares, the cash generated by those sales has fallen alongside CoreWeave’s stock price, Protos said.
- On May 5, that block fetched $39 million at about $128 per share.
- On September 8, it raised $31 million near $100 per share.
- On September 22, it yielded $27 million near $87 per share.
- At Thursday’s price near $60, the same block would bring in less than $19 million.
All told, officers and directors have sold about $740 million of CoreWeave stock since the company entered the Nasdaq 100 on June 22. Shares opened near $119 that day and opened below $62 today, according to the report.
Credit markets signaled rising stress
Protos said lenders were pricing distress into CoreWeave debt. The company’s cost to borrow on bonds maturing in 2031 rose above 16%, a level the article compared with credit card interest rates.
Credit default swaps on CoreWeave implied roughly a 63% chance of default within five years. At the end of June, the company owed about $52 billion in combined debt and lease obligations.
The article also referenced a chart of CoreWeave’s performance since its June 22 Nasdaq 100 inclusion. In the same piece, Protos separately wrote that the stock was down 32% since joining the index, while the body of the report said the shares had fallen more than 46% and had dropped to nearly half of their opening level from that day.