Quantum Computing to Raise $750 Million in Private Placement. The Stock Falls.

Quantum Computing said it had entered into agreements for the sale of 37 million shares of company stock for gross proceeds of $750 million. (Dreamstime)

Key Points

• Quantum Computing plans to raise $750 million through a private placement of over 37 million shares, closing October 8.
• The company intends to use the $750 million proceeds for commercialization, acquisitions, and scaling quantum hardware production.
• Shares of Quantum Computing fell more than 14% early Monday, reflecting concerns about potential dilution.

Quantum Computing stock tumbled on Monday after the company said it planned to raise $750 million in an oversubscribed private placement.

The company said Sunday evening that it had entered into agreements with institutional investors for the purchase and sale of more than 37 million shares of common stock.

Titan Partners Group, a New York-based investment bank, will act as the sole placement agent for the offering, Quantum said. The offering is expected to result in gross proceeds of $750 million before expenses, and is set to close on Wednesday.

Quantum said it plans to use the proceeds to “fully fund commercialization” and make strategic moves such as acquisitions, increasing its staff, and establishing the capabilities to produce quantum hardware at scale.

Shares, which had plunged more than 14% early Monday**,** were down 9.4% to $22.31 in late afternoon trading, snapping a three-day winning streak. The stock move appeared to reflect concerns over potential dilution.

CEO Yuping Huang, who assumed the role earlier this year, noted that the company had raised $1.64 billion since November 2024, giving it “the strongest balance sheet among publicly traded quantum computing companies.”

This puts them neck and neck with IonQ, which closed a $1 billion equity offering earlier this year, bringing the company’s pro-forma cash, cash equivalents, and investments to around $1.6 billion.

Quantum Computing said just last month that it planned to raise $500 million in a private placement with several large existing shareholders and one new investor. The offering closed at the end of September.

“Our focus now shifts to expedite the transition from a quantum technology innovation company to a leading quantum hardware manufacturer,” Huang said, adding that the company was sufficiently funded to execute on its business plan through 2028.

Ascendiant Capital Markets analyst Edward Woo reiterated a Buy rating on the stock last week, arguing that the price could touch $40 amid sustained demand for high performance computing.

“By being early in this rapidly growing industry, we believe Quantum is well-positioned to capture and drive a meaningful market share and industry growth,” Woo wrote.

Shares of industry peers Rigetti Computing and D-Wave Quantum were extending gains from last week, rising 7% and 10%, respectively, after hitting record highs on Friday. IonQ was up 7.4%.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com