Ondas Secures $960 Million Funding, Stock Surges 5% Amid Mixed Reactions to Major Capital Increase
Ondas Holdings Inc. (NASDAQ: ONDS) shares closed at $13.88 on the 13th (local time), up 5.46% on the Nasdaq, as trading volume topped 92.79 million shares, extending a period of short-term volatility. The company’s market cap swelled by about $378 million to $5.33 billion, but the stock has been on a roller-coaster ride of pullbacks and sharp rallies following its recent large-scale fundraising announcements.
When Ondas first revealed on January 9 a plan to issue $1 billion of common stock and warrants, dilution concerns sent the share price down more than 6% at one point. But on January 12, the company confirmed the closing of its registered direct offering, securing net proceeds of approximately $959.2 million, which turned market sentiment positive. The aggressive capital raise comprises 19 million newly issued shares, up to 41.79 million pre-funded warrants, and additional warrants exercisable into 121.58 million shares. Because the offering price of $16.45 represented about a 17.5% premium to the prior closing price, investors viewed the terms as “not unfavorable,” spurring a short-term rebound.
Ondas intends to deploy the proceeds toward corporate development and accelerated growth via acquisitions, joint ventures, and strategic investments. The company explained that, following multiple financings in 2025 that raised $855 million, this deal will boost its pro forma cash balance to approximately $840.4 million. Having recently acquired Israel’s Sentrycs, ground-robot firm Apeiro Motion together with 4M Defense, and other optics and sensor businesses, Ondas has been expanding its defense and security technology portfolio—drone interception, ground and subterranean robots, precision sensors—significantly enhancing its firepower for further M&A and R&D. However, if all warrants are exercised, the potential $3.4 billion inflow would substantially increase the share count, creating inevitable dilution risk and likely sustaining short-term share-price volatility.
Through its subsidiary Ondas Autonomous Systems, the company develops autonomous-driving and combat AI for drones and unmanned ground vehicles, while Ondas Networks supplies private wireless communication solutions for railroads, public safety, and energy infrastructure. Leveraging its DOT16 platform—based on the IEEE 802.16t standard adopted by the U.S. Federal Railroad Administration—the company is running pilot projects with major North American Class I freight railroads and has secured successive orders for drone-intercept systems and autonomous ground robots from military and government agencies. Ondas has raised its 2025 revenue outlook to at least $36 million and set a 2026 target of at least $110 million, underpinning its high-growth narrative.