Shares of Upstart Holdings (NASDAQ: UPST), the artificial-intelligence powered, cloud-based lending platform, plummeted Wednesday to close the session down 12.6%. The company had only itself to blame after announcing plans that will cause stock dilution.
After watching its stock price surge to six times in value in the four months since its December IPO, Upstart decided to cash in last night. The fintech announced it will sell at least 2 million new shares of common stock, and as many as 2.3 million.
Upstart said it will use the proceeds from the sale for general corporate purposes.