AST SpaceMobile shares rise 3.6% after Blacklift rocket deal
AST SpaceMobile shares rise 3.6% after the company said it will build its own 20-ton Blacklift rocket, with about $800 million in upfront consideration for Firefly Aerospace Miranda engines.
Key takeaways
- AST SpaceMobile (ASTS) will build its own 20-ton Blacklift rocket to deploy BlueBird satellites from late 2028. It will pay about $800 million upfront for Firefly Aerospace engine rights, $400 million in cash and 10 to 14 million shares. Firefly will also supply engines for three launches for $250 million.
AST SpaceMobile (ASTS) shares rise 3.6% after the company said it will build its own 20-ton rocket to deploy BlueBird satellites into low Earth orbit, using Miranda engines from Firefly Aerospace.
Shares rose 3.6% at 9:36 a.m. ET on Nov. 9, from a $32.33 close.
The custom-built, reusable rocket, Blacklift, is designed to carry up to five BlueBird satellites per launch, starting in late 2028. Blacklift will complete its end-to-end vertical integration and give the company regular access to orbit.
The license deal carries about $800 million upfront: $400 million in cash and 10 to 14 million shares of Class A Common Stock, set by a forward VWAP calculation.
The company will acquire the perpetual license to manufacture the Miranda and vacuum-variant Vira engines at a new engine manufacturing facility in the United States.
The supply and services agreement covers $250 million for engines for its first three rocket launches and $250 million over three years for engineering support services.
The Miranda engine has completed more than 175 hot fire tests, for more than 4,200 seconds, and a flight-like test at 110% performance of its 230,000 lbf thrust.
AST SpaceMobile will keep using external launch providers. Agreements cover over 100 BlueBird satellites to be deployed cumulatively between 2027 and 2028, plus further launches for U.S. Government missions alongside its Defense Priorities and Allocations System (DPAS) rated program.
BlueBird satellites, the largest-ever phased arrays launched into low Earth orbit, are in production through BlueBird 51 in Midland, Texas.
"The Blacklift rocket is the springboard to significantly expand our total addressable market," Chairman and CEO Abel Avellan said.
The Miranda engine will support an expanded market beyond direct-to-device, including U.S. Government radar, secure communications, IoT, federal emergency, AI edge compute and additional funded networks.
An unveiling event for Blacklift is set for Nov. 12 in New York City.