Can QUBT's Oversubscribed Fund Raising Power Its Quantum Ambitions?

Quantum Computing Inc. QUBT or QCi recently announced a series of oversubscribed private placements with institutional investors, underscoring strong market confidence in its vision, technology, and growth strategy.

In the latest transaction, QCi entered into securities purchase agreements for 37,183,937 shares of common stock in an oversubscribed private placement, expected to yield $750 million in gross proceeds before expenses. The company intends to use these funds to advance commercialization, pursue strategic acquisitions, expand manufacturing capacity, and strengthen its workforce and operations. With this, the total capital raised since November 2024 has reached $1.64 billion, positioning QCi with one of the strongest balance sheets among publicly traded quantum companies and providing funding visibility through 2028.

Previously, QCi closed a $500 million oversubscribed private placement for 26,867,276 shares, and a $200 million offering involving 14,035,089 shares at $14.25 per share. The recurring oversubscription across these fundraising events reflects robust institutional investor demand and confidence in QCi’s differentiated photonic quantum technology platform.

Management noted that investor enthusiasm validates QCi’s strategy and accelerates its transformation from a quantum technology innovator to a leading quantum hardware manufacturer. Backed by substantial capital, QCi is well-positioned to commercialize its products, expand production capabilities, and pursue strategic opportunities that advance its mission of bringing quantum technology to practical, real-world use.

Peer Update

Rigetti Computing RGTI today announced the completion of its at-the-market equity offering program, generating $350 million in gross proceeds from the sale of its common stock. This strengthened financial position places Rigetti in an excellent position to accelerate the commercial scale-up of its superconducting gate-based quantum computers. The company plans to use the proceeds primarily to support working capital needs, capital expenditures, and other general corporate purposes, while also maintaining flexibility to pursue strategic collaborations, acquisitions, or partnerships that further advance its technology and market growth.

D-Wave Quantum QBTS announced the successful completion of its $400 million at-the-market equity offering, raising gross proceeds at an average share price of $15.18. The transaction boosts D-Wave’s cash balance to about $815 million, giving it the strongest balance sheet among public, independent quantum computing companies. The funds will be used for strategic acquisitions, working capital, capital expenditures, and other general corporate purposes. This strengthened financial position will help D-Wave expand its lead as the only commercial quantum computing company with applications in production.

QUBT’s Price Performance

In the past year, QCi’s shares have gained 1362.4%, outperforming the industry’s 28.3% growth. The S&P 500 composite has grown 17.5% in the same period.

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Expensive Valuation

QUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 2758.30X compared with the industry average of 5.57X.

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QUBT Stock Estimate Trend

In the past 30 days, its loss per share estimate for 2025 has moved south 8 cents to 25 cents.

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QUBT stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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