By Mackenzie Tatananni

The enthusiasm around quantum computing stocks is undeniable, and D-Wave Quantum and Quantum Computing are taking notice, selling shares to fund future investments.

In a filing with the Securities and Exchange Commission on Thursday, D-Wave Quantum revealed that it had sold $150 million in common stock, bringing its cash balance to around $320 million.

"We believe that the completion of this equity offering provides us with the capital necessary to fully execute our operating plan to sustained profitability and positive cash flow," CEO Alan Baratz said.

Earlier this month, Quantum Computing said it had entered into purchase agreements with institutional investors for the sale of more than eight million shares of common stock at $12.25 a share. Chief Financial Officer Chris Boehmler said the $100 million offering brought the total gross capital raised since November to $190 million.

The funds will help Quantum Computing follow through on its plans for growth and capitalize on "considerable opportunities" in the quantum market, Boehmler said.

Quantum-computing start-ups need the money because many remain in the red. While the timeline is unclear, developing commercially viable products is expected to take years.

IonQ CEO Peter Chapman predicts his company will generate close to $1 billion in revenue and turn profitable by 2030.

D-Wave and Rigetti have repeatedly risked stock delisting because their closing prices dipped below $1 for 30 consecutive days. They received their third and second warnings, respectively, in October, though the stocks have taken off since then.

Shares of quantum computing companies were sliding in Thursday afternoon trading. D-Wave declined 2.6% to $6.09, while Rigetti Computing slipped 4.2% to $13.32. IonQ fell 2.7% to $40.91. Quantum Computing was down 2.2% to $10.86.

Despite the challenges, the companies are forging ahead. Days after Microsoft unveiled its Quantum Ready program, an effort to help executives familiarize themselves with the technology, D-Wave launched a similar initiative.

The Leap Quantum LaunchPad program offers free trial access to D-Wave systems, allowing clients to use quantum "to solve problems that can be out of reach of classical computers," the company said. D-Wave said it had also expanded quantum technology access for its Quantum Programming Core and Quick Start Training programs.

Tech companies aren't the only ones in the race. While Accenture is best known as an IT consulting firm, it has been developing quantum applications for years with partners including D-Wave.

This week, Accenture announced a strategic investment in QuSecure, a company specializing in post-quantum cybersecurity. QuSecure CEO Rebecca Krauthamer said the companies would offer solutions to government and private-sector clients to help mitigate "emerging quantum risks."

"It is critical that we evolve from encryption management that requires several years to upgrade algorithms to orchestrated crypto agility -- the ability to push a button and upgrade your entire system at once," Krauthamer said.

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

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January 23, 2025 13:06 ET (18:06 GMT)

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