Shares of D-Wave Quantum (NYSE: QBTS) fell nearly 15% from last Friday through Thursday’s market close, continuing the decline on Friday. The company announced an at-the-market (ATM) stock offering to raise up to $400 million, which analysts warn could dilute existing shareholders. D-Wave’s stock has surged 1,268% over the past year, currently trading at 191 times forward sales.
D-Wave’s ATM offering allows for the issuance of common stock with the intention to fund general corporate purposes, including capital expenditures and potential acquisitions. Despite these moves, the announcement coincides with positive remarks about quantum computing from Nvidia’s CEO Jensen Huang, who highlighted the sector’s potential for growth. Cash reserves as of March 31 were reportedly sufficient to fund the company to profitability.
