Introduction
Lanzatech ($LNZA) is a company that captures industrial waste gases from steel mills and refineries and ferments them into ethanol. That ethanol is the feedstock for Lanzajet's alcohol-to-jet process producing sustainable aviation fuel (SAF). The technology is licensed globally. LanzaTech does not operate fuel plants directly. Beyond SAF, Lanzatech operates a parallel carbon recycling business under its CarbonSmart brand.
LanzaJet funding - February 2026
Lanzajet closed a funding round led by IAG and Shell at a pre-money valuation of $650M. The Hormuz crisis arrived weeks later making the $650M likely stale to the upside- explained next. Lanzatech holds ~46% of Lanzajet post-dilution worth USD 300M (or more, given the Iran war)
Iran / Hormuz crisis
US- Israel strikes on Iran triggered Hormuz closure. Brent surged past $100. The conventional jet fuel shortage massively strengthened the structural case for SAF
May 15 - 2,000,000 shares @ $10.00
Lanzatech announced a $20M registered direct offering. Stock crashed ~44.5% on the news.
June 3 - 2553.HK (Shougang Lanzatech) debut on HKEX
Beijing Shougang LanzaTech lists at HKD 14.60 IPO price. Current: HKD 34.24 (today, June 4). Lanzatech owns 9.3% in the company, which is worth USD 160M
LNZA is trading at $70M, hidden assets worth $460M
US GAAP requires companies to value equity investments based on how much control or influence they have over the investee and whether a market price exists. Lanzatech's stakes in both Lanzajet and the chinese joint venture 2553.HK fell into categories that do not require fair-value updates through earnings. That changes as of June 3, 2026 for Shougang lanzatech.
Stake 1 - Shougang Lanzatech 2553.HK
Before June 3rd - ASC 321 - equity security, no readily determinable fair value - after June 3rd - mandatory switch to fair value through net income. Under ASC 321-10-35-2, LNZA is now required to measure the 2553.HK stake at fair value each reporting period, with unrealized gains and losses recorded directly in net income. The ~$147M unrealized gain (from $15M book to ~$162M market value) should be recognized in the Q2 2026 income statement, right?
Stake 2 - Lanzajet
At 46% ownership, LanzaTech exercises "significant influence" over Lanzajet the threshold under ASC 323-10-15 is generally 20%. LNZA records Lanzajet at original cost, then adjusts the carrying value each quarter by its proportionate share of Lanzajet's net income or loss. Because Lanzajet is unprofitable, LNZA has been booking its share of those losses, which is why the balance sheet shows only $11.32M despite a $650M+ implied valuation (the stake is worth ~$300M)
Summary
The stock is down 66% over the past year largely because of a deeply dilutive May offering priced at a 42% discount, triggering a 44% single-day crash it also created the current gap: a company whose two financial assets alone are worth roughly six times its market cap, with a mandatory accounting restatement due by August 14 2026 (Q2 earnings). Not a financial /legal advice. If I'm wrong, prove me wrong