AST SpaceMobile raises $1 billion via convertible bonds to fund satellite internet plans amid a 60% stock decline from highs.
AST SpaceMobile (NASDAQ: ASTS) shares fell nearly 60% from their peak after announcing a $1 billion convertible bond offering to support its satellite internet ambitions. The company aims to commercialize direct-to-device connectivity, eliminating the need for bulky satellite dishes like those used by Starlink.
The stock had surged earlier this year but retreated alongside other space-economy equities following a broader sector pullback. Starlink, a competitor, already generates over $10 billion in revenue, highlighting the market potential for ASTS if it executes its technology.
Despite the funding boost, shares traded around $55, reflecting investor skepticism about the company’s path to profitability and commercial viability.