CONNECT WITH US
Web3 & Blockchain

Web3 & Blockchain

CoreWeave halved since joining Nasdaq 100 as insiders sold $740 million

Protos logo

Published on

Add as a preferred source on Google
CoreWeave halved since joining Nasdaq 100 as insiders sold $740 million

CoreWeave CEO Mike Intrator sold about $85 million worth of stock in the heavily indebted AI company between September 15 and September 30.

Those same shares have since lost more than a quarter of their value.

Insider selling is rampant at the company whose stock has lost $18 billion in market cap and more than 46% of its share price since joining the Nasdaq 100 index.

This week, McBee told the Financial Times that CoreWeave is looking to borrow even more money.

Although the CEO has sold a regular, weekly block of about 307,700 shares, the value of his sales has been collapsing alongside CoreWeave’s stock price. 

All told, officers and directors have sold about $740 million of CoreWeave stock since the company joined the normally prestigious Nasdaq 100 index on June 22.

Shares opened that day near $119 yet opened for trading today below $62. Lenders to the company are pricing distress.

CoreWeave’s cost to borrow on 2031 maturity bonds soared above 16% — nearing 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 roughly $52 billion in combined debt and lease obligations.

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.



Source link
Related Topics:Web3 & Blockchain

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.