Shares of AST SpaceMobile (ASTS) climbed 2% in premarket trading Monday as the company’s $1 billion convertible note offering approached its settlement date.
The move follows a turbulent week for the stock, which gained 5% on Friday but still closed the week down 21%, its steepest weekly decline in more than two years.
Satellite communications analyst Tim Farrar weighed in on X, suggesting that AST SpaceMobile’s financing strategy points toward acquiring a launch provider rather than simply buying more rocket missions.
Farrar’s comments came in response to an investor analysis arguing that half of the convertible proceeds could be needed to replace delayed Blue Origin New Glenn launches with SpaceX Falcon 9 missions.
Farrar said: “It is correct that the original plan was only 3 F9s plus 9 NGs including BB7.”
He went further, stating: “Of course, the plan is not just to buy more F9s, which probably isn’t feasible anyway. AST intends to buy a launch company: likely foolish but they need to change the story.”
The analyst had also said last week that AST SpaceMobile’s offering documents made it “pretty clear” the company intended to buy or invest in a launch provider to vertically integrate its operations.
AST SpaceMobile priced the $1 billion offering of 1.625% convertible senior notes due 2034, with the company saying remaining proceeds would pursue an “expanding universe of growth initiatives” and secure additional access to orbit through partnerships and acquisitions.
The company expects net proceeds of approximately $983.6 million, rising to roughly $1.13 billion if underwriters fully exercise their option to purchase an additional $150 million of notes.
The financing coincides with continued expansion of AST SpaceMobile’s BlueBird satellite constellation, with BlueBirds 11, 12, and 13 now confirmed at Cape Canaveral ahead of the company’s next planned launch.
Production is continuing through BlueBird 38, with next-generation satellites expected to deliver nearly twice the peak speeds of the company’s first-generation spacecraft.
Separately, the Midland Development Corporation’s board was scheduled to consider an economic development agreement Monday that would support AST SpaceMobile’s satellite manufacturing expansion at the Midland Spaceport Business Park.
On Stocktwits, retail sentiment for ASTS was rated “bullish” alongside a 52% jump in 24-hour message volumes, reflecting strong grassroots interest despite the stock’s recent slide.
One Stocktwits user posted: “$ASTS maybe the $1b raise was to double production capacity because Scott and Abel are convinced of an incoming unprecedented major demand for specialized satellites critical for national defense.”
Another user wrote: “$ASTS such a steal right now. Put in an order for 175 more shares at open. Will bring my total to 3,325 shares. Hoping to retire off of this stock/dividends. Just have to believe in Abel and team.”
ASTS stock has risen approximately 1% over the past year but has declined around 20% since January, leaving investors closely watching how the company deploys its newly raised capital.
