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.
- CFO Nitin Agrawal sold at about $80 a share on Monday.
- CRO Jonathan Jones sold at about $77 on Tuesday, while the company’s cost to borrow skyrocketed to 15% annually on its 2032 bonds and shares plunged 15% one day later.
- General counsel Kristen McVeety sold 97,500 shares near $94 on September 8, taking in $9 million.
- Co-founder Brannin McBee sold 250,000 shares at about $106 on August 17, raising $27 million for himself.
This week, McBee told the Financial Times that CoreWeave is looking to borrow even more money.
Read more: CoreWeave down 32% since joining the Nasdaq 100
CEO sells cheaper and cheaper CoreWeave stock
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.
- 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, his block would bring in less than $19 million.
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.
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