SharonAI Holdings' shares fell 11.3% to $58.03 in midday trading on Thursday after the company disclosed a secondary offering and convertible debt sale that added to selling pressure.
The stock had opened at $66.90, reversing an earlier gain as investors reacted to SEC filings detailing a $691.7 million convertible note offering and the sale of roughly 26 million shares by existing shareholders. The company will not receive proceeds from the secondary offering.
SharonAI's stock had surged from near $40 in late July to a consolidation around $65-$67 ahead of the session. The decline follows a prior close of $76.90 on August 17, with after-hours trading showing a drop to $76.28.
The company recently completed the first phase of a five-year, $950 million AI cloud infrastructure contract with an unnamed global technology customer with significant Asia-Pacific operations. Cash security held in escrow was released upon customer acceptance of the initial deployment, though SharonAI does not expect revenue from the deal until staged payments begin in the third and fourth quarters of 2026.
The broader market also weighed on sentiment, with the NASDAQ down 0.9% and the S&P 500 falling 0.4% during the session.
