Form 4: Magnetar Funds Establish Collar on CoreWeave Stock

Magnetar Financial and related entities have entered into a collar arrangement involving 71,838 shares of CoreWeave Class A Common Stock, setting price boundaries for future sale or exercise.

Summary

• Magnetar Financial LLC, Magnetar Capital Partners LP, Supernova Management LLC, and David J. Snyderman are reporting persons for this transaction.
• The reporting persons are identified as directors and 10% owners of CoreWeave, Inc. [CRWV].
• A collar arrangement was established on September 30, 2025, covering a total of 71,838 shares of CoreWeave Class A Common Stock.
• The arrangement involves writing covered call options with a strike price of $200 per share and purchasing put options with a strike price of $115 per share.
• All options are set to expire on June 18, 2026.
• The total premium received for writing the call options is $1,508,598.
• The total premium paid for purchasing the put options is $1,652,274.
• The underlying shares are held indirectly by 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 (collar) by a significant shareholder. It's not inherently positive or negative for the company's operations, but reflects a defined outlook on the stock price by a sophisticated investor.

Positives

• The put option component of the collar arrangement provides downside protection for the underlying 71,838 shares at a strike price of $115, limiting potential losses.
• The call option component generates premium income, contributing to the overall return on the position.
• The collar strategy demonstrates a sophisticated approach to managing risk and potential returns on a significant equity holding in CoreWeave.

Negatives

• The call option limits the upside potential for the underlying shares, as any appreciation above $200 per share by the expiration date will result in the shares being sold at that price.
• The cost of purchasing the put options, totaling $1,652,274, reduces the net return from the overall position.

Risks

• If CoreWeave's stock price falls below $115 by June 18, 2026, the put option will be exercised, obligating the sale of shares at $115, thereby capping losses but realizing a potential loss from the current market value if it is higher.
• If CoreWeave's stock price rises above $200 by June 18, 2026, the call option will be exercised, obligating the sale of shares at $200, thereby capping potential gains.
• If the stock price remains between $115 and $200 at expiration, both options will expire worthless, and the premium paid for the put option will be a sunk cost.

Future Outlook

The collar arrangement establishes a defined risk/reward profile for the 71,838 shares of CoreWeave Class A Common Stock until June 18, 2026, indicating an expectation of the stock price remaining within the $115-$200 range or a strategic decision to manage exposure within these bounds.

Industry Context

Collar strategies are a common practice in investment management, particularly for institutional investors and significant shareholders, to hedge large equity positions, manage risk, and generate income. This strategy allows investors to protect against significant downside while sacrificing some upside potential, reflecting a tactical approach to portfolio management for a 10% owner.

Comparison to Industry Standards

• The utilization of a collar strategy is a standard risk management technique employed by sophisticated institutional investors and large shareholders to manage exposure on substantial equity holdings.
• The specific strike prices ($115 for the put and $200 for the call) and the June 2026 expiration date reflect Magnetar's particular market outlook and risk tolerance for CoreWeave shares, which would be evaluated against similar hedging strategies used by peers for comparable growth-stage or private-to-public companies.
• The net cost of the collar (put premium minus call premium) provides insight into the cost of downside protection relative to the cap on upside gains, a key metric for assessing the efficiency of such a hedging strategy.

Stakeholder Impact

• Shareholders: The collar arrangement by a 10% owner could be interpreted as a signal of a defined price range expectation for CoreWeave stock by a sophisticated investor. It does not directly impact the company's operations or financial performance.

Next Steps

• The options will either expire or be exercised on June 18, 2026, at which point the shares will either be sold at $115 or $200, or the options will expire worthless, depending on CoreWeave's stock price.

Key Dates

Recommendation

This Form 4 details a hedging strategy by a 10% owner, Magnetar Financial, on their existing CoreWeave shares. The collar arrangement (selling calls, buying puts) indicates a desire to limit downside risk while capping upside potential within a defined range ($115-$200) until June 2026. This is a neutral risk management move by a sophisticated investor, not a direct bullish or bearish signal on the company's fundamentals. Therefore, a 'hold' recommendation is appropriate as it doesn't provide new information warranting a change in investment thesis, but rather reflects a tactical position management.

Keywords

CoreWeave, CRWV, Magnetar Financial, SEC Form 4, Beneficial Ownership, Derivative Securities, Collar Option, Call Option, Put Option, Equity Derivatives, Investment Management, 10% Owner