From a 26p penny stock to the FTSE 250, it has been quite the exciting three-year journey for Seraphim Space Investment Trust (LSE:SSIT). But like a rocket battling turbulence on its way through the atmosphere, it has been a very volatile ride.
Just take the last month. After soaring to a record closing high of 273p on 22 May, the trust crashed back to earth, hitting 176p on Friday (5 June). Now though, it has rebounded to 215p after surging 15% today (9 June).
What’s going on? And is the stock worth considering today?
A meaty uplift
Launched in 2021, Seraphim Space is an investment trust focused on the space technology sector. Its portfolio holdings span satellite communications, earth observation, defence, and space infrastructure.
The last few months have been eventful, to say the least as investors have piled into the sector ahead of the historic SpaceX IPO (happening later this week). This has turbocharged interest in the trust, propelling it into the FTSE 250 (from 19 June).
Joining the FTSE 250 reflects not only the company’s progress, but the transition of space from a specialist technology theme into a core pillar of global infrastructure. Space has become foundational to how nations operate, compete and secure their future.
CEO Mark Boggett.
On top of this, we got news today that its largest holding, ICEYE, is raising €450m in a new financing round that values it at more than €10bn. This is a Finnish satellite radar imaging specialist that has supplied sovereign intelligence capabilities to seven European governments so far.
The implied uplift in Seraphim’s stake is approximately £202m, a 102% increase, or the equivalent of an increase in NAV per share of 73p. That’s a meaty elevation for a trust with a £665m market cap.
Portfolio progress
The encouraging thing here is that it proves the people running the trust can spot hidden gems across the space start-up ecosystem. Some of these holdings are now scaling rapidly.
For instance, in 2025, ICEYE reported over €100m in EBITDA (earnings before interest, taxes, depreciation, and amortisation) on more than €250m in revenue. That’s a strong margin, while the order backlog is now worth over €1.5bn.
Meanwhile, space analytics firm HawkEye recently listed on the Nasdaq at a $2.42bn valuation. It also has a surging backlog, and was the trust’s third-largest position in March, accounting for 9.8% of assets.
Finally, York Space Systems has agreed to acquire ALL.SPACE, the second-largest holding. So there’s a lot going on right now in the portfolio.
Is this stock still worth bothering with?
The biggest risk here is over-concentration, given that ICEYE now makes up north of 50% of assets. That can turbocharge returns when things are going well, but it can also work in reverse (as investors in 3i Group have recently discovered).
On the other hand, the share price is still down 22% since the end of May. This puts the market cap closer to the assumed underlying NAV, which will be revised upwards due to the ICEYE uplift when the official figures are published in October.
For long-term investors who are bullish on the booming global space sector, I think the trust’s still worth a look. But this is a volatile vehicle and definitely in the high-reward-but-high-risk camp.
Should you invest £5,000 in Seraphim Space Investment Trust Plc right now?
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Ben McPoland owns shares in 3i Group.
