Former hedge fund manager Jim Cramer says IonQ Inc (NYSE: IONQ) is “hard to short” after the quantum computing company announced a $2.0 billion equity offering on Friday.

IONQ is offering 16.5 million of its common shares at a significant premium of $93 each.

IonQ stock has been a lucrative investment in 2025. At the time of writing, the quantum computing stock is trading more than 300% above its year-to-date low in early March.  

Why this equity offering is bullish for IONQ stock

While equity offerings are often seen as negative for a stock due to dilution concerns, the unique structure of the IONQ deal makes it notably more investor-friendly.

The quantum technology company has priced its offering at $93 a share, representing about a 20% upside on its previous close, indicating the investor – Heights Capital – is really betting on long-term upside.

Additionally, the transaction includes seven-year warrants exercisable at $155, roughly double the IONQ share price at the time of writing.

That sort of pricing isn’t typical for distressed capital – it’s a strategic infusion.

Following this cash injection, IonQ has the runway to accelerate commercialisation and global expansion, potentially outpacing peers in a nascent but high-stakes industry.

Why Jim Cramer now finds IonQ shares ‘hard to short’

According to Jim Cramer, the NYSE-listed firm pricing its common stock at a huge premium, and warrants exercisable at an even higher price, makes its valuation rather opaque and shorting risky.

“You don’t know what the real valuation of this is – and that makes it very hard to short,” he said in an appearance on CNBC today.

Cramer also dubbed the equity offering as the beginning of a new chapter for IONQ stock since so far, it’s been propped up by retail investors only – but now, institutional players are stepping in.

“Retail can’t handle a $2.0 billion offering. The fact they can sell this much equity to an institution, marks the beginning. I think everyone’s going to take their cue,” he noted.

Cramer has long recommended caution on the high-flying quantum computing stocks, but IONQ, he acknowledged today, may now be emerging as the one to watch.

How to play IONQ at current levels

IonQ’s ability to secure a record-setting investment from a single institution is a milestone for the quantum technology industry.

It validates the company’s roadmap and positions it as a first mover in a field still searching for commercial traction. Yet, as Cramer cautioned, profitability remains elusive.

For now, IONQ has capital, credibility, and momentum – but it must convert those into real-world deployments.

That’s why Wall Street rates IonQ stock at “overweight” currently, but its mean target of about $65 suggests the quantum stock has already gone a bit too far.

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