Momentus's stock nearly triples in 2 days as the space company raises more cash from investors

By William Gavin

The company announced a $25 million private placement of shares, a day after filing for the sale of up to $200 million in securities

Momentus investors continue to cheer as the space company secures more cash from institutional investors.

A more than doubling in a single day apparently wasn't enough, as shares of Momentus took flight again on Wednesday, after the company found another way to raise cash.

The company, which provides satellites and in-space transportation services, announced on Wednesday a private placement of 2.94 million shares of common stock to existing institutional investors. The deal is expected to generate proceeds of some $25 million, before expenses are factored in.

The private placement, set to close on Thursday, would be Momentus's second in less than a month and third this year. The earlier sales were valued at about $5 million each, before expenses. It also comes a day after Momentus registered for the sale of up to $200 million of securities, according to a regulatory filing.

In a quarterly filing earlier this month, the company said that, because of its capital raises since the end of 2025, it believes that "substantial doubt" about its ability to continue as a going concern - which it had expressed in previous quarterly filings - "no longer exists."

Momentus's stock (MNTS) jumped 26% on Wednesday, after rocketing 109.8% on Tuesday. Shares have jumped more than 160% over the past two days, and have soared 320.3% over the past month, but are still down 38.7% over a span of 12 months.

See more: Space stocks are rocketing as SpaceX keeps making pre-IPO headlines with first Starship launch.

After the latest deal closes, Momentus expects to have cash, cash equivalents and short-term investments of about $76 million. It ended the March quarter with $23.4 million in cash and cash equivalents, according to a regulatory filing.

Momentus also recorded a $9.48 million net loss last quarter, compared with a $6 million loss a year earlier.

"We intend to use the proceeds for research and development, investment in strategic business initiatives and general corporate purposes," Momentus CEO John Rood said in a statement.

Space stocks have been rallying since SpaceX officially filed to go public last week. The company's initial public offering is expected to drive attention to the broader sector, which has already begun to benefit.

Both public and private investments in the space sector have surged in recent months. In addition to SpaceX's upcoming IPO, the sector is set to play a role in the Trump administration's "Golden Dome" plan, as well as NASA's push to reach the moon. On Tuesday, NASA awarded private companies Astrolab and Blue Origin new contracts related to its lunar plans.

Deutsche Bank examined 50 public space-related companies and found that their market valuations are up nearly 3.5 times on a year-over-year basis, according to a Wednesday report. On average, the market capitalizations of space stocks have grown 138% in 2026, far outpacing the Nasdaq, Deutsche said.

Several exchange-traded funds have also attracted investors' attention, especially the handful that offer exposure to SpaceX.

Opinion: This mutual fund lets you buy SpaceX stock before the IPO - but what are you actually getting?

The Tema Space Innovators ETF NASA, which owns SpaceX shares through a special-purpose vehicle, surpassed $1 billion in assets under management in just 37 trading days. The Procure Space ETF UFO passed that $1 billion milestone on Wednesday, and CEO Andrew Chanin said it reflected the "extraordinary growth" of the industry.

Powerlaw (PWRL), a closed-end fund that has invested in SpaceX and OpenAI, began trading on the Nasdaq on Wednesday.

Space-sector growth hasn't been universal, however. While the best performer Deutsche Bank looked at has seen its market cap grow by roughly 2,300% this year, the worst performer's market cap has fallen by about 60%.

See more: Starlink signs a new airline customer as it races to be the top in-flight internet provider.

-William Gavin

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05-27-26 1849ET