ASTS Punished Over 1.5% Dilution? Shay Boloor Bought the Dip, Calls Fundraise 'Completely Misunderstood'

AST SpaceMobile shares tumbled 17.04% on Thursday following the announcement of the private offering of 1.625% convertible senior notes due in 2034. However, Boloor argues the panic is a “completely misunderstood” reaction to the massive headline figure. Because the company spent roughly $97 million on capped call transactions—protecting shareholders up to $149.20 per share—the true equity hit is minimal. “Based on this announced structure, the effective dilution is only going to be around 1.5%,” Boloor explained, noting that locking in over seven years of capital at a 1.6% interest rate represents “excellent financing terms” for a pre-revenue company.