The last two weeks at SPCE have been wild. +100% in a week, Reddit going nuts, everyone talking about SpaceX mix-up and short squeeze. I took a closer look.
Virgin Galactic released an official SEC filing (Form 8-K) today.
It states: The company intends to file on June 10, 2026 debt in the amount of ~$30.5 million - not in cash, but in new shares of new shares. The price is calculated using the average price over the next 5 days.
The management literally writes that they see the current market conditions as an "opportunity". Translated: The share price is currently inflated by meme hype, so we'd rather issue shares now than at €2.80.
The result: The higher the price is now, the fewer shares they have to issue. The Reddit community pumps up the price -> and Virgin Galactic uses this directly to reduce debt cheaply. The bondholders will receive their fresh shares on June 10 and will sell them immediately.
Retail is therefore involuntarily financing the debt restructuring of a company without any significant income.
