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
Because some earlier investors want to cash out, lol.
This is a bad practice. I am pretty sure CRCL management team was pressued by their instituion investors so they combine these two together. Normally, company would just issue new shares, which is not a out-of-line practice.
This is why I said below this is negative news in short term
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
This is a bad practice. I am pretty sure CRCL management team was pressued by their instituion investors so they combine these two together. Normally, company would just issue new shares, which is not a out-of-line practice.
This is why I said below this is negative news in short term
house, cars, or a boat.