Seraphim Space Investment Trust (LSE:SSIT) has invested $30 million in Hubble Network, making the satellite connectivity specialist the first new portfolio company backed with capital raised through the trust’s recent £137 million C Share issue.
Hubble is developing a satellite-enabled Bluetooth network designed to connect standard Bluetooth Low Energy chips directly with satellites in orbit. The technology aims to extend global connectivity to billions of existing devices without requiring specialised satellite communications hardware.
Potential applications include asset tracking, logistics, supply-chain management and industrial monitoring, giving Hubble exposure to a wide range of commercial markets where conventional terrestrial connectivity can be limited or unavailable.
C Share Deployment Passes £40 Million
The Hubble investment takes the amount deployed from Seraphim’s C Share proceeds to more than £40 million.
Having reached this level, Seraphim expects a partial conversion of C Shares into ordinary shares at the end of the current quarter. The anticipated conversion represents another step in the trust’s strategy of deploying the £137 million raised through the C Share issue into SpaceTech opportunities.
Management views the pace of deployment as evidence of progress in putting the newly raised capital to work while expanding the trust’s portfolio.
Hubble Expands Direct-to-Device Satellite Network
Hubble has developed rapidly from an earlier-stage company into a growth-stage satellite connectivity business.
The company currently has seven satellites in orbit and more than 100 million terrestrial access points, alongside increasing commercial traction for its connectivity technology.
Seraphim highlighted Hubble as an example of its multi-stage investment approach, which allows the trust to gain exposure to businesses at different stages of development and potentially continue supporting them as they scale.
The investment also increases Seraphim’s exposure to the growing direct-to-device satellite communications market, where companies are developing ways to connect existing consumer and industrial devices through space-based infrastructure.
Cash Flow and Earnings Quality Temper Outlook
Seraphim Space’s broader financial profile benefits from a conservative balance sheet with no debt, providing flexibility as it continues investing across its portfolio.
However, persistently negative operating cash flow remains a constraint, while earnings can be volatile because performance is influenced substantially by changes in portfolio company valuations.
Technical indicators are also less supportive in the near term, with the shares trading below important short-term moving averages. A relatively low price-to-earnings multiple provides some valuation support, although the nature of investment trust earnings means valuation movements remain an important consideration.
More about Seraphim Space Investment Trust Plc
Seraphim Space Investment Trust plc is a London-listed investment company specialising in SpaceTech businesses and was established as the world’s first publicly traded fund dedicated to space-related technologies.
The trust follows a multi-stage investment strategy covering companies from early-stage venture opportunities through to later growth rounds. Its portfolio targets emerging areas of the space economy, including satellite communications, direct-to-device connectivity and space-based infrastructure.
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