Nvidia among investors in xAI’s $20bn capital raise - Bloomberg News
Investing.com -- CoreWeave (NYSE:CRWV) stock tumbled 10% in early trading on Tuesday as the company’s largest shareholder and executives continued to sell shares following the expiration of the post-IPO lockup period.
Magnetar Financial and its subsidiaries sold 915,339 shares worth $94.4 million last Thursday, adding to the approximately 1.5 million shares the firm had already sold earlier in August. The top shareholder also implemented a protective "collar" trade strategy, selling call options and buying put options to hedge its remaining position.
Company insiders joined the selling activity, with CEO Michael Intrator offloading 82,455 shares worth about $7.8 million on Wednesday. General Counsel and Corporate Secretary Kristen McVeety exercised stock options and sold her entire direct stake of 311,796 shares, valued at nearly $30 million. McVeety still maintains an indirect position of 95,000 shares through a grantor-retained annuity trust, Sherwood News reported.
The sell-off in CoreWeave shares comes amid broader weakness in high-growth technology stocks on Tuesday. The AI cloud computing company’s stock has been volatile since its public debut, as investors assess its position in the competitive artificial intelligence infrastructure market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.