Yes but indirectly, and the nominal rate of borrow doesn't matter as long as the rate is less than the expect potential growth of the long-term value of Bird stock.
At its core, Bird creates hype by creating a product or a service, this hype has some value.
Investors believes they can increase and benefit from this hype so they decide to bring new cash.
This new cash is supposed to be used generate new revenue, which in turn is increasing the hype, and this hype helps to bring new cash.
At the end of the cycle, the point of fast growing private equity fund is to carry and grow hype until a potential IPO which is the time the retail investors or the general public are going to be left holding the bag (Airbnb, Uber, Coinbase)
or to the point where the company becomes profitable and distributes future earnings (e.g. Microsoft).
Which means, as long as there is hype, there is new money coming in.
The reason money comes so much is because investors are nudged to spend their cash (e.g. negative interest rates also means that people who have cash and not equities are punished, as they have to pay interests!).
Also, the retail investors have had this incentive but don't anymore.
Remember, during the corona, a lot of people didn't know what to do with their money because no restaurants, no travel, etc.
So playing with cryptos and stock market on Robinhood.
-> The expected inflows of cash are going to decrease because retail investors that will hold the bag eventually won't be so keen to invest as they need their money (higher inflation).
-> The cash is more expensive, so there is a mechanical reason for the decrease.
-> There is uncertainty
Overall:
-> We need the company to survive so the pyramid doesn't collapse.
-> Rationalizing by reducing our cost base is the most reasonable solution to protect all the investors and the employees who invested their time and sweat.
