Astra Space Considers Selling Parts Of Its Business To Raise Funds

Astra Space, the California-based aerospace company, is exploring the possibility of selling a majority stake in its in-space propulsion business or other parts of the company, as it seeks to secure the funding necessary to avoid bankruptcy. The potential sale of a 51% stake in the propulsion business alone could be valued at over $100 million, according to sources familiar with the matter.

Exploring Various Options to Raise Capital

Astra Space is also considering selling parts of its rocket factory, equipment, or other divisions such as the propulsion business to generate the much-needed cash infusion. The company’s aim is to tap into new financing opportunities and alleviate its financial struggles.

Earlier this year, Astra split off its spacecraft propulsion business into a subsidiary in order to provide better options for securing funds. This recent development of potentially selling parts of the business is not entirely unexpected, as it aligns with the company’s ongoing efforts to navigate its financial difficulties.

Financial Challenges and Acquisitions

Over the past few months, Astra Space has been grappling with significant financial challenges. At the end of the second quarter of this year, the company reported having only $26.3 million in cash and cash equivalents. This stands in stark contrast to its previous valuation of $2.1 billion when it announced plans to go public through a blank-check firm over two years ago.

Astra Space had acquired its in-space propulsion business through the acquisition of Apollo Fusion in 2021. The acquisition was seen as a strategic move to expand the company’s space services and integrate them with its rocket development. However, it was later revealed that the acquisition faced internal challenges and resulted in a significant turnover of the original Apollo Fusion team within Astra Space.