By Mackenzie Tatananni

Oklo doesn't have revenue but needs cash to build its nuclear powerhouses. It may have a solution.

The energy start-up has struck a deal with a group of major banks to sell up to $1.5 billion worth of common shares through an at-the-market (ATM) equity offering program, the company disclosed to the government after Thursday's market close.

Oklo stock slid in after-hours trading. In midday trading, shares were off 5.3%. The benchmark S&P 500 was up slightly.

A public offering often drags down a stock because the sale will dilute the holdings of current investors. Oklo spelled out the risk in a prospectus filed with the Securities and Exchange Commission, cautioning that buyers "may experience immediate and substantial dilution in the net tangible book value."

Others have raised capital through an ATM offering, which effectively allows a company to raise capital on its own terms.

Strategy is a notable example. The world's largest corporate Bitcoin holder doesn't generate much revenue from its legacy software business so it uses the proceeds from several ATM programs to fund its crypto purchases.

Oklo is waiting for the federal Nuclear Regulatory Commission to approve its advanced fast reactors. Until then, the company can't sell any electricity and generate revenue.

Proceeds from the offering will support general corporate purposes, working capital and capital expenditures, and future investments, according to the securities filing.

Earlier this year, Oklo was selected to participate in the Energy Department's Reactor Pilot Program, which aims to have at least three test reactors running at national laboratories by this coming July -- at least a year ahead of the start-up's earliest deployment target.

The stock is up more than 395% this year, compared with the 70% gain for the VanEck Uranium and Nuclear ETF. The ETF's largest holdings include NuScale Power and Constellation Energy.

OpenAI CEO Sam Altman served as Oklo's board chairman until April 2024, about a month before the energy start-up made its public debut. Altman headed the special purpose acquisition company that took Oklo public.

Today, Oklo is one of the hottest nuclear stocks -- garnering support from Wall Street despite questions about its fundamentals.

Though Oklo posted no revenue and a wider-than-expected net loss in its latest quarter, BofA Securities remarked that it had "delivered meaningful progress on fuel de-risking and regulatory milestones."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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December 05, 2025 12:41 ET (17:41 GMT)

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