CoreWeave insiders sell over $1B in stock as IPO lock-up period expires

CoreWeave insiders have sold over $1 billion in stock as the IPO lock-up period expires, with Morgan Stanley, JPMorgan Chase, and Goldman Sachs arranging the block trades. Investors rushed to offload shares in the AI hyperscaler.

CoreWeave, a prominent AI data center company, has seen a significant shift in its stock market activity following the expiration of its IPO lock-up period. Insiders have sold over $1 billion in shares, with major financial institutions such as Morgan Stanley, JPMorgan Chase, and Goldman Sachs facilitating the block trades. This move reflects the growing interest and confidence in CoreWeave's market position [1].

The lock-up period, which restricted the trading of 84% of CoreWeave's Class A shares, ended on August 14, 2025. The expiration allowed for a substantial increase in the available float, leading to significant trading volumes. For instance, JPMorgan alone handled block sales of around 5 to 6 million CoreWeave shares at a price of approximately $97 per share, while Morgan Stanley and Goldman Sachs handled similar volumes [2].

The stock, which is currently trading at $98.77, has been under pressure since the company disclosed its Q2 2025 earnings. While CoreWeave beat the consensus revenue estimate by reporting quarterly sales of $1.21 billion, it also reported a $290.5 million net loss and $8 billion in debt. The company's operating expenses surged to $1.19 billion, nearly quadrupling from the previous year. Despite these challenges, CoreWeave's shares have stabilized around the $100 level after a 35% plunge due to disappointing second-quarter results [3].

The expiration of the lock-up period has raised concerns about CoreWeave's financial health. The company's stock has a 26x price-to-sales ratio, which contrasts sharply with the 10x-12x valuations of cloud giants like Microsoft and NVIDIA. This disparity underscores the sector's risk profile and highlights CoreWeave's scalability challenges [4].

Investors should be cautious, as the expiration of the lock-up period exposes 83% of CoreWeave's shares to market absorption risks amid AI sector volatility. The company's recent $9 billion acquisition of Core Scientific adds another layer of uncertainty, with some shareholders expressing skepticism about the valuation. The ability to scale efficiently while managing costs will be critical for CoreWeave to unlock shareholder value [4].

References:

[1] https://www.startupecosystem.ca/news/coreweave-investors-sell-over-1-billion-in-shares-as-ipo-lock-up-ends/
[2] https://wccftech.com/coreweave-post-ipo-lockup-share-liquidations-begin-as-jpmorgan-goldman-sachs-and-morgan-stanley-handle-several-block-sales/
[3] https://www.tipranks.com/news/coreweave-crwv-insiders-sell-over-1b-worth-of-shares-as-ipo-lock-up-period-ends
[4] https://www.ainvest.com/news/coreweave-post-lock-market-catalyst-navigating-volatility-unlocking-shareholder-2508/