Astra Space Mulls Strategic Options, Including Asset Sales: Report

In the ever-evolving space industry, companies continuously explore strategic avenues for growth and profitability. But a recent development from Astra Space Inc ASTR, a rocket-launching firm, has caught the industry's attention.

The Alameda, California-headquartered firm is contemplating divesting a majority share of 51% in its in-space propulsion arm, among other potential sales strategies, according to a report from Bloomberg.

The company aims to value this specific division upwards of $100 million if they go down this route, the report noted

Astra is also considering the potential sale of various parts of its business, including its equipment, parts of its rocket factory and its in-space propulsion division, the report mentioned.

However, the final decision remains pending, and there's a possibility that Astra might decide to preserve its existing structure.

Following the revelations, Astra Space's stock witnessed a dip of 2.2%, yesterday placing its market cap at approximately $24 million, a significant drop from its $2.1 billion valuation when it went public in 2021 through a SPAC deal.

Established in 2016, Astra Space's initial vision was to fabricate compact rockets for launching diminutive satellites.

Price Action: ASTR shares closed lower by 2.24% at $1.31 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.