Backblaze Registers Resale of 4.2M CoreWeave Warrant Shares at $7.60 Strike

summarizeSummary

Backblaze registered the resale of 4.2 million shares underlying CoreWeave warrants with a $7.60 strike price, making a 6.8% overhang tradable and potentially pressuring the stock near its 52-week high.

check_boxKey Events · Financing and Capital Events · BLZE

• 4.2M Share Resale Registered

  An S-3 filing registers the resale of up to 4,194,876 shares underlying CoreWeave warrants, representing approximately 6.8% of outstanding shares.

• Warrant Strike at $7.60

  Exercisable at $7.60 per share, the warrants sit at a deep discount to the current $18.17 stock price, creating a strong incentive for exercise and sale.

• Vesting Tied to Deal Milestones

  The Initial Warrant vests quarterly over 5 years, while the Additional Warrant vests based on contracted storage capacity, aligning CoreWeave's interest with the partnership's success.

• No Proceeds to Company from Resale

  Backblaze will not receive proceeds from CoreWeave's share sales, though it could receive up to ~$31.9M if all warrants are exercised for cash.

auto_awesomeAnalysis · BLZE · Technology

Backblaze filed an S-3 to register the resale of up to 4.2 million shares underlying warrants issued to CoreWeave as part of the $335 million cloud storage deal announced in June. The warrants have a $7.60 strike price — well below the current $18.17 stock price — and vest over time, with the initial tranche vesting quarterly over five years. While the company won't receive proceeds from share sales by CoreWeave, the registration makes a significant overhang tradable. If CoreWeave exercises and sells, existing shareholders face dilution of roughly 6.8% of outstanding shares. The filing is a follow-through on the previously disclosed agreement, but the registration itself is a material step that could pressure the stock, especially with shares trading near 52-week highs.