On Monday, IONQ Inc. (IONQ.US) shares plunged nearly 10% in early trading, currently quoted at $36.12.

On the news front, quantum computing company IonQ has agreed to acquire Elisity in an all-stock deal valued at up to $1.3 billion, aiming to expand its cybersecurity platform to defend against AI-assisted attacks and emerging quantum threats.

The Maryland-based company said in a statement on Monday that Elisity is a fast-growing enterprise security firm that will bolster IonQ's expanding quantum security product line; the $1.3 billion consideration includes up to $150 million in performance-based earnouts.

Analysts noted that while the company claims the move will expand its cybersecurity platform and address security threats posed by large language models and quantum computing, the all-stock acquisition structure and the relatively high valuation premium have sparked market concerns about potential equity dilution.