alt Hacker NewsI'm surprised they didn't go the debt route, trade finance could cover their customer orders. I know they are risk averse in case companies back out of orders, but bringing on more shareholders is its own form of risk.
Is something else going on here, are they locking in orders from AMD and other suppliers beyond their current order backlog?
Replies
MisterMunchkin • today at 3:57 PM
Debt can bankrupt you, equity can’t. They’re concerned the meme companies will collapse, cancel their orders and then kill them. Then mr bezos will turn up and liquidate their assets.
Or… they could just take on equity investment at no risk.
kev507 • today at 5:57 PM
blog mentions the use of debt facilities, there's a smart mix of both debt and equity
This is a crazy take. If you can raise on good terms (or better) then it almost always beats debt. Debt can make it a lot harder to raise or take on more debt in the future.
They're profitable, they are going to get the best terms possible at this moment.