Key Points

• Oklo raised $1 billion in its ATM stock sale earlier this year.

• It launched a second $1 billion ATM stock sale after it exhausted that offering.

• 10 stocks we like better than Oklo ›

Oklo (NYSE: OKLO), a developer of microreactors, is attracting significant attention as a next-gen nuclear energy stock. Its Aurora microreactors are much smaller than conventional reactors, but they can be deployed in off-grid and remote areas.

They're also prefabricated at factories before being delivered to the site for modular assembly, making it much cheaper and easier to construct a nuclear power plant. Moreover, they need refueling only once per decade because they can reprocess and recycle their own uranium pellets, whereas conventional reactors are still refueled in stages every two years.

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Oklo's technology sounds like a game changer for the resurgent nuclear energy market, but it doesn't expect to deploy its first commercial reactors until late 2027 or early 2028. Until that happens, it will barely generate any revenue while racking up steep losses.

That's why it wasn't surprising when Oklo recently launched a $1 billion stock sale to fund that expansion. Is that a troubling move, or is it merely business as usual?

How badly will Oklo's new stock offering dilute its investors?

Oklo went public on May 10, 2024, through a merger with a special purpose acquisition company (SPAC). Since then, it's increased its share count by 52%.

This May, Oklo launched its first $1 billion at-the-market (ATM) stock sale program. Over the following four months, it exhausted that program by selling 17.97 million shares at an average price of $55.64 per share. This new $1 billion ATM stock sale succeeds that program.

As of this writing, Oklo's stock trades at about $38. At that price, it would sell 26.3 million new shares, increasing its share count by 14% and diluting its existing investors 12%. That's not a good look for a company that already trades at 136 times its 2028 sales.

On the bright side, Oklo's stock sales actually reduce its debt-to-equity ratio (which was only 0.03 at the end of June) by increasing its share count rather than taking on more debt. The proceeds from its ATM sale will also flow directly to its balance sheet, without the burden of recurring interest payments associated with debt offerings. At this pre-commercialization stage, it makes more sense to dilute its existing investors than to increase its debt.

Why is this business as usual?

In the first half of 2026, Oklo generated just $1.2 million in revenue (from engineering, machining, and technical service contracts) with a net loss of $81.6 million. It still held $1.6 billion in cash and equivalents at the end of June (driven by its previous ATM stock offering), but it will burn through that cash much faster when it deploys its first Aurora Powerhouses next year. So while Oklo's persistent dilution isn't great news for its current investors, it will firmly support the initial phase of its commercial expansion.

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Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.