CoreWeave's Insiders Sold $740M Amid Nasdaq 100 Membership, Shares Plunge 46%
Key Summary
CoreWeave's CEO, CFO, and co-founder have sold a combined $740 million worth of shares since joining the Nasdaq 100 index, as the company's stock price has plummeted 46% and its cost to borrow has skyrocketed to 15% annually.
Insider Sales Weigh on CoreWeave's Stock Price
CoreWeave's CEO, CFO, and co-founder have sold a combined $740 million worth of shares since joining the Nasdaq 100 index. The company's stock price has plummeted 46% and its cost to borrow has skyrocketed to 15% annually.
Selling Pressure Intensifies
Insiders have been selling shares at increasingly lower prices, with the CEO's weekly block fetching $39 million at $128 per share and eventually $19 million at $60 per share. The CFO has also sold shares, with a price of $80 per share on Monday.
Financial Distress Looms
Lenders to the company are pricing distress, with CoreWeave's cost to borrow on 2031 maturity bonds soaring above 16%. Credit default swaps on CoreWeave implied a 63% chance of default within five years. The company owed roughly $52 billion in combined debt and lease obligations at the end of June.