BlackSky Technology got hit. On July 18, 2025, $BKSY dropped 20.79% after announcing a convertible debt offering worth up to 185 million dollars. The notes carry an 8.25% interest rate and only convert if the stock reaches 37 dollars. That’s a long way from the 22.41 dollar close. The announcement came while retail momentum was still pushing the tape past 28 dollars. The timing flipped sentiment.
Volume surged past 347,000 shares. Options flow turned bearish. The July 25 call chain lost 37.5% of its value. Implied volatility dropped 22%. Traders pulled bids. Forums that were tracking satellite launches shifted to dilution math. The float rotation stalled.
The business fundamentals remain intact. Gen-3 satellites are still operational. The 290 million dollar Luno A contract is still active. Spectra continues feeding real-time analytics to defense clients. No earnings miss. No contract cancellation. But the capital structure changed. That’s what hit the tape.
Short interest moved to 7.5%. Insider selling stayed quiet. Institutions like Schwab and Patriot Financial held their Q2 positions. No signs of forced liquidation. But the bid thinned. Sentiment cooled.
The stock landed back near its early July base. The rally paused. The question now is whether the tape reloads or fades. The float is thinner. The leverage is higher. The fundamentals are still there. But the energy shifted.
NOTE: This is not financial advice. Please conduct your own due diligence.
Sources:
https://www.fool.com/investing/2025/07/18/why-blacksky-technology-stock-just-crashed
https://finance.yahoo.com/quote/BKSY250718C00025000