Why BlackSky Stock Just Blasted Off

Shares of recent special-purpose acquisition company (SPAC) IPO and NewSpace company BlackSky (NYSE: BKSY) are...behaving strangely today, first spiking more than 20%, then retracing to an 11.9% gain as of 3 p.m. EDT, after the company filed its post-merger Form S-1 registration statement with the Securities and Exchange Commission (SEC). After all, in today's filing, BlackSky registered a total of 106.4 million shares of common stock that could potentially begin floating in the future, plus a further 8.3 million warrants for the purchase of shares (which are included in the 106.4 million). On the plus side, though, as the S-1 filing makes clear, about 24.1 million of these shares will only be issued and become publicly traded upon the exercise of warrants, and those warrants will only become profitable to exercise once the share price of BlackSky stock exceeds $11.50, or even, in the case of some warrants, $20 a share.