AST SpaceMobile (NASDAQ:ASTS) raised $1.0B via 1.625% convertibles to fund rapid BlueBird launches and orbital expansion even as shares tumbled ~12–13%; heavy 2026–27 cash burn and partner-dependent revenue raise dilution risk, though B. Riley upgraded the stock to Buy.
Previous Week Recap
- Ast SpaceMobile Converts Notes: AST SpaceMobile (ASTS) priced $1.0B of 1.625% convertible notes due 2034 (plus $150M option), conversion ~$79.57, capped call ~$149.20; proceeds for growth and orbital access; shares fell ~12–13%.
- BlueBird Launches Planned: AST SpaceMobile (ASTS) plans three BlueBird launches (11–13) from Cape Canaveral in early August; BlueBird 10 deployed its antenna, 11 is at Cape, 12–13 en route; production toward BlueBird 37.
- Astr SpaceMobile Cash Burn: AST SpaceMobile (ASTS) faces ~ $3B cash burn in 2026–2027, negative free cash flow until 2028; substantial revenue tied to partners AT&T, Verizon, Bell Canada, Vodafone; equity dilution risk noted.
- B. Riley Upgrades ASTS: B. Riley Securities upgraded AST SpaceMobile, Inc. Class A (ASTS) from Neutral to Buy and kept its price target at $85.00 per share.
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