Disclosure: I own shares of SharonAI Holdings (SHAZ), bought at $65. I am still holding as of publish time. This is not a recommendation to buy, sell, or hold anything.
Key points
- SharonAI (SHAZ) is down slightly today while every other major neocloud is up, four days after signing a $1.32 billion, five-year cloud deal.
- SharonAI closed a $1.6 billion financing on June 29 that added roughly 13 million new shares, and the stock has fallen almost every week since.
- The real market cap is about $2.2 billion, based on 35.4 million shares outstanding per the company's own July SEC filing, not the smaller figures some data sites still show.
- Leopold Aschenbrenner's fund, a major SharonAI investor, is also betting on a possible Anthropic Australia data center deal that could name a partner by mid-August.
I bought SharonAI (SHAZ) at $65 near the lows on July 2, and I called it a short-term trade at the time, not a long hold. About two and a half weeks later, I am still in it. Today the stock is sitting around $62, down slightly, while IREN is up about 21%, Cipher Mining is up about 19%, Applied Digital is up about 8%, Nebius is up nearly 5%, and even CoreWeave, the smallest mover of the group, is still green. Every neocloud I track is having a good day. Mine is barely moving. And this is four days after SharonAI signed a $1.32 billion cloud deal.
The deal is real
We covered the deal itself here the day it happened: a five-year, $1.32 billion cloud computing agreement with an unnamed global AI lab, deploying capacity out of New Zealand, with revenue starting in the first half of 2027. It is not SharonAI's first big contract either. Back in April, they signed a separate $1.25 billion, five-year deal with ESDS Software Solutions for an Australian data center. Two billion-dollar-plus, five-year contracts in about three months is a real business doing real things, not a story stock. The stock fell the day of the July 16 announcement too, and it never really recovered.
So why is the stock going the wrong direction on good news? I went digging through the SEC filings myself instead of guessing.
The actual answer: a massive share count increase
On June 29, SharonAI closed a $1.6 billion financing. $900 million of it was new stock and pre-funded warrants, adding roughly 13 million shares. The other $700 million came as convertible notes due 2032, which turn into more shares later. I pulled the company's own July proxy statement and found the current share count: 35.4 million shares outstanding as of July 2. That puts the real market cap around $2.2 billion at today's price, bigger than some data sites are still showing since they have not caught up to the new share count.
The stock actually peaked at $97.48 on June 17, before the financing even closed, and it has fallen almost every single week since. It fell through the financing closing. It fell through the deal announcement. On July 16, the day of the $1.32 billion deal, SHAZ closed down about 7%. That is a textbook sell-the-news reaction, and it tells you the market is more worried about new shares hitting the market than it is excited about a new contract.
Why I am still holding
Dilution is a real cost, not a reason to panic by itself. SharonAI raised that money specifically to fund the NVIDIA GPU deployments behind these exact contracts, so the new shares and the new revenue are connected, not separate stories. The company now has two five-year, billion-dollar-plus contracts on the books with revenue starting in 2026 and 2027, an NVIDIA compute partnership backing the buildout, and a stock price that has already dropped by more than a third from its June high pricing in a lot of that new share supply.
There is also a real, if speculative, reason I think this gets better before it gets worse. We reported earlier this month that Anthropic is weighing a $15 billion, 1.4 gigawatt data center buildout in Australia, with a final decision reportedly expected by mid-August. Nobody has named a partner yet, and nothing is confirmed. But Leopold Aschenbrenner's fund, Situational Awareness LP, already owns close to 20% of SharonAI, and it was also one of the lead investors in the $1.6 billion financing I just walked through. Aschenbrenner is engaged to Anthropic CEO Dario Amodei's chief of staff, a real and publicly reported connection, not an allegation of anything improper. None of that guarantees SharonAI gets picked for the Australia buildout, but it is a real, concrete reason to think the odds are better than a random guess. That is why I believe there is a real chance it does, and it is a big part of why I am holding through the dilution instead of selling into it.
What would change my mind is simple. If the stock keeps sliding well after the current wave of newly registered shares actually gets sold into the market, that tells me demand for the business itself is weak, not just the share count. If it stabilizes once that supply clears, this starts looking like exactly what it is right now on paper: a company winning real contracts that got priced down hard for issuing the stock needed to deliver them.
I am up nothing on this trade right now. I am down about 4% from my entry. I am still holding it.
Sources
- SharonAI $1.32 billion cloud agreement, July 16, 2026: SharonAI Holdings Inc. Form 8-K, SEC filing.
- SharonAI $1.25 billion ESDS Software Solutions agreement, April 1, 2026: SharonAI Holdings Inc. Form 8-K, SEC filing.
- SharonAI $1.6 billion strategic financing, closed June 29, 2026: company press release and Form 8-K, SEC filing.
- Shares outstanding and Nasdaq shareholder approval requirement: SharonAI Holdings Inc. DEF 14A proxy statement, filed July 2026.
- Stock price data: Nasdaq market data, July 20, 2026.
This is my own opinion based on my own position and is not investment advice. I own shares of SHAZ as disclosed above. Always do your own research and consider talking to a licensed financial professional before making any investment decision.
