There are usually two reasons company does this

1: They have a great business plan but need capital to support it. They would sell shares if they think issuing debt cost company more in long term (ie, creditor may demand high yield for a new IPO company) --- This is not necessary a bad news

2: They anticipate some headwind and want to raise cash while stock price is favorable --- this is a warning sign

 

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CRCL's operation expense is very low, so my best case is #1 -三心三意- 给 三心三意 发送悄悄话 三心三意 的博客首页 (0 bytes) () 08/12/2025 postreply 14:33:42

The warning sign is actually 8M shares sold by shareholders -三心三意- 给 三心三意 发送悄悄话 三心三意 的博客首页 (0 bytes) () 08/12/2025 postreply 14:35:05

Thanks for your insights. This is the confusing part for me. why -eriecaserun- 给 eriecaserun 发送悄悄话 (0 bytes) () 08/12/2025 postreply 14:40:00

Because some earlier investors want to cash out, lol. -三心三意- 给 三心三意 发送悄悄话 三心三意 的博客首页 (309 bytes) () 08/12/2025 postreply 14:43:48

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