Form 4: Magnetar Funds Establish Collar on CoreWeave Stock

Magnetar Financial and related entities have entered into a collar arrangement involving call and put options on 392,632 shares of CoreWeave Class A Common Stock.

Summary

• Magnetar Financial LLC, Magnetar Capital Partners LP, Supernova Management LLC, and David J. Snyderman, identified as a Director and 10% Owner of CoreWeave, Inc., reported changes in beneficial ownership.
• The reporting entities entered into a collar arrangement on September 10, 2025, involving CoreWeave Class A Common Stock.
• This arrangement includes writing covered call options with a strike price of $200 and purchasing put options with a strike price of $82.5.
• The options cover a total of 392,632 shares of Class A Common Stock, with an expiration date of June 18, 2026.
• The call options were sold for a total premium of $4,318,952, and the put options were purchased for a total premium of $5,104,216.
• Only one of the options (call or put) can be in-the-money and exercised at expiration, with the other expiring; if neither is in-the-money, both expire.
• The securities are held indirectly by Magnetar Structured Credit Fund, LP, Magnetar Xing He Master Fund Ltd, Purpose Alternative Credit Fund F LLC, and Purpose Alternative Credit Fund T LLC.

Sentiment

Score: 6

Explanation: The filing reports a neutral risk management strategy by a significant shareholder. It's not inherently positive or negative for the company's operational performance, but rather reflects the shareholder's view on managing their equity exposure.

Positives

• The collar arrangement provides a defined range for the value of the underlying CoreWeave shares, limiting downside risk for the reporting person below $82.5 per share.
• The sale of call options generates immediate premium income for the reporting person.

Negatives

• The collar arrangement caps the potential upside for the reporting person's CoreWeave shares at $200 per share.
• The purchase of put options incurs a cost (premium paid) for the reporting person.

Risks

• The reporting person's investment in CoreWeave Class A Common Stock is subject to market price fluctuations within the collar's defined range ($82.5 to $200).
• If CoreWeave's stock price falls below $82.5, the put option will be exercised, limiting further losses but locking in a sale price.
• If CoreWeave's stock price rises above $200, the call option will be exercised, requiring the sale of shares and capping gains.

Future Outlook

The collar arrangement sets a defined price range for the reporting person's CoreWeave shares until June 18, 2026, indicating a strategy to manage risk and potential returns over this period.

Management Comments

• The entity holding the underlying shares of Class A common stock entered into a collar arrangement pursuant to which such entity wrote a covered call option and purchased a put option.
• Only one of the options can be in-the-money on the expiration date, at which time the in-the-money option will be exercised and settled in shares and the other option will expire. If neither option is in-the-money on the expiration date, both options will expire.
• Each of the Magnetar Funds, Magnetar Financial, Magnetar Capital Partners, Supernova Management and David J. Snyderman disclaims beneficial ownership of these shares of Common Stock of the Issuer, except to the extent of its or his pecuniary interest therein.

Industry Context

Collar strategies are common in the investment management industry for large shareholders or institutional investors seeking to hedge against significant downside risk while retaining some upside potential, typically on a long-term holding. This transaction suggests Magnetar is managing its exposure to CoreWeave's stock, potentially as part of a broader portfolio management strategy or in anticipation of future market movements.

Comparison to Industry Standards

• The use of a collar strategy is a standard risk management technique for large equity positions, often employed by hedge funds or institutional investors like Magnetar.
• The specific strike prices ($82.5 put, $200 call) define the risk/reward profile for this particular holding, which would be evaluated against CoreWeave's current market valuation and growth prospects.
• Comparable strategies are used by funds managing significant stakes in high-growth, potentially volatile companies, similar to how large investors might manage positions in tech firms like Palantir Technologies (PLTR) or Snowflake (SNOW) to protect capital while allowing for some appreciation.

Related Party Transactions

• The reporting persons (Magnetar Financial LLC, Magnetar Capital Partners LP, Supernova Management LLC, and David J. Snyderman) are identified as a Director and 10% Owner of CoreWeave, Inc., making this an insider transaction.

Stakeholder Impact

• Shareholders: The transaction itself does not directly impact CoreWeave's operations or financial performance. However, it signals a large shareholder's strategy to manage risk and return on their equity position.
• Company (CoreWeave): The company is not directly involved in the derivative transaction, but the reporting of a significant shareholder's hedging activity provides transparency to the market.

Next Steps

• The collar arrangement will remain active until the options' expiration date of June 18, 2026.
• At expiration, either the call or put option will be exercised, or both will expire, depending on CoreWeave's stock price relative to the strike prices.

Key Dates

Recommendation

This Form 4 filing details a hedging strategy by a significant shareholder, Magnetar, through a collar arrangement. It indicates a desire to protect downside risk while capping upside potential on their existing CoreWeave shares. This is a neutral event regarding the company's operational performance or future prospects. It does not suggest a change in the fundamental investment thesis for CoreWeave, nor does it signal an imminent large-scale sale or purchase that would warrant a 'buy' or 'sell' recommendation based solely on this filing. Therefore, a 'hold' recommendation is appropriate, maintaining existing positions while monitoring CoreWeave's underlying business performance.

Keywords

CoreWeave, CRWV, Magnetar Financial, SEC Form 4, Beneficial Ownership, Collar Option, Call Option, Put Option, Derivative Securities, Insider Transaction, Equity Derivatives, Investment Strategy