After the recent boom and bust in the industry, a few once-promising space companies are running out of money and could go bankrupt, be bought out, or be taken off the stock market.
1. Momentus Inc
Momentus Inc., a business that provides transportation services in space, told its shareholders earlier this month that it is almost out of cash.
After a SPAC merger in 2021, the stock of the company sold for more than $10 per share. Today (as of 27 January, 2024), it’s only worth about $0.79 per share, giving the company a market value of only $7 million.
Momentus has given up on its next goal, so it doesn’t have a clear way to move forward. To stay out of bankruptcy, it will probably need a “white knight” acquisition or a large amount of money within the next few weeks.
2. Astra Space Inc.
Astra Space Inc., a rocket launcher, is another star that has fallen. At its peak, Astra’s shares were worth more than $10 billion, or more than $20 each. Today (as of 27 January, 2024), they’re worth less than $2.3 each, giving the company a market value of only $50 million.
The company stopped launching things in June of last year, and the business it bought to sell spaceship parts hasn’t been able to bring in any real money.
As Astra’s founders ran out of cash, they recently suggested that the company go private again, but the board hasn’t said anything about that idea since. Astra doesn’t seem to be able to avoid going bankrupt unless there is a last-minute rescue.
Sidus Space Inc.
Even the less well-known space company Sidus Space Inc. is sending out danger signs because it is quickly running out of cash. Sidus went public at the end of 2021 with plans to run its own satellite fleet and a business that tests satellite data.
The company’s market value has dropped below $10 million, and its shares are now worth almost $9 each. This is because it isn’t making much money and its losses are getting bigger.
The company’s first satellite was supposed to launch last year, but it won’t happen until March 2023. At the last count, Sidus had less than $2 million in the bank. They are running out of time to fix things.
The problems are also not one-off events. Satellogic Inc., a company that makes Earth-imaging satellites, recently said that it doesn’t think it will be able to make it through the next 12 months. Of course, Virgin Orbit Holdings Inc. already came back to earth last year when it filed for bankruptcy following its own SPAC deal.
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Even though there were some high-profile failures, investment in the space business rose to over $12 billion last year, and the long-term growth thesis is still valid. A lot of space companies trade for a lot less than what they were worth when they first went public, but they aren’t facing instant existential threats.
For example, Terran Orbital Corporation recently confirmed that it has a strong cash situation, even though it lowered its revenue guidance. Some unlucky space stocks may still be falling because they went public at the wrong time, but the sector as a whole looks like it will finally get back up in the air.
Momentus, Astra, and Sidus, on the other hand, are quickly running out of air as they move forward.