AST SpaceMobile's stock is falling as the satellite company seeks more cash

By William Gavin

The company intends to take on $1 billion worth of debt as it looks to create a space-based cellular network

AST SpaceMobile said Wednesday it finished unfolding its BlueBird 6 satellite, which is more than three times the size of its previous satellites and supports 10 times the data capacity.

AST SpaceMobile shares are dropping after the company said it would take on $1 billion worth of debt as it looks to develop a space-based cellular network.

On Thursday, the satellite maker announced it would issue $1 billion in convertible senior notes due in 2036 with an interest rate of 2.25%. AST SpaceMobile (ASTS) said the notes have an initial conversion price of $116.30 per share of its Class A common stock.

That's a roughly 20% premium compared with Wednesday's closing price of $96.92. AST SpaceMobile shares fell as much as 15.9% in intraday action on Thursday before paring losses.

The stock is currently trading at about $82 per share, or 41% below the notes' conversion price.

AST SpaceMobile expects the net proceeds from the notes to be about $983.7 million, which will be used to pursue opportunities related to artificial intelligence and space-related opportunities with the U.S. government. It also plans to buy back some debt.

The company said Thursday it would repurchase about $300 million of the principal amount of existing convertible senior notes due in 2032, removing 5.2 million underlying shares. AST SpaceMobile will issue 6.3 million shares to fund the transaction.

Read: AST SpaceMobile's stock is on a roll. This key factor could make or break its momentum.

Although it doesn't currently generate much revenue, AST SpaceMobile said in November that it had secured more than $1 billion in contracted revenue commitments from commercial partners. Analysts expect the company to report $40 million in sales for its fourth quarter, up from $14.7 million in the prior quarter, according to FactSet estimates.

On Wednesday, AST SpaceMobile said it had unfolded its BlueBird 6 satellite, which was launched into low-Earth orbit in December 2025. The company says the spacecraft is more than three times the size of its previous satellites and supports 10 times the data capacity.

AST SpaceMobile plans to deploy between 45 and 60 satellites by the end of 2026, which will allow it to "offer commercial-grade service continuously in the United States, Europe, and other markets that matter around the world," Chief Strategy Officer Scott Wisniewski said in December.

Its next launch is scheduled for no sooner than late February and will be carried out by Blue Origin's New Glenn rocket, according to AST SpaceMobile. That mission will put the BlueBird 7, which is identical to the BlueBird 6, into orbit.

AST SpaceMobile is far behind its biggest competitor, Elon Musk's Starlink, which says it already has more than 9 million customers across 155 markets. Another rival, Iridium Communications (IRDM), plans to launch a satellite-based direct-to-device offering this year.

Amazon (AMZN) Leo, a subsidiary of Amazon.com, is focused on serving enterprise customers. On Thursday, it launched 32 satellites into LEO as it seeks to build its nascent business.

See: Amazon wants to be a satellite powerhouse. For now, the effort is a financial black hole.

-William Gavin

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02-12-26 1418ET