SpaceX launches first bond deal after blockbuster IPO with $100.8 billion cash
Elon Musk’s SpaceX has entered the bond market for the first time, taking advantage of strong post-initial public offering momentum that has pushed its cash reserves to $100.8 billion as the company increases spending across its rockets and artificial intelligence businesses.
The notes offering launched on Monday comes just days after the company’s IPO, highlighting a strategic shift in its balance sheet approach. SpaceX is moving away from short-term bridge financing and toward longer-dated debt instruments, a structure that is expected to support its large-scale expansion into artificial intelligence infrastructure and next-generation rocket development.
Following the announcement, SpaceX shares declined 9 percent in morning trading, marking a third consecutive session of losses.
The company went public on Nasdaq on June 12 after raising $85.7 billion through its initial public offering, a move that positioned SpaceX among the world’s most valuable listed firms. Musk retains an 82 percent voting stake following the IPO, maintaining dominant control over corporate decisions.
According to Adam Sarhan, chief executive of 50 Park Investments, Musk’s continued supermajority voting power through a dual-class share structure means that issuing bonds allows the company to preserve existing ownership without issuing additional equity. He noted that choosing debt over equity effectively avoids further shareholder dilution.
Read more: SpaceX stock plunges below IPO price after $400 billion market value wipeout
Heavy capital investment
SpaceX has significantly ramped up investment in artificial intelligence infrastructure and the development of its next-generation Starship rocket. These capital-intensive initiatives have weighed on profitability despite strong expansion in its Starlink satellite internet business. Revenue increased 33 percent to $18.67 billion last year, although the company still posted a net loss due to heavy spending and the integration of Musk’s artificial intelligence company, xAI.
The firm has not disclosed the size or pricing details of the new bond issuance. Proceeds are expected to be used for general corporate purposes, repayment of borrowings under its bridge loan facility, and associated fees and expenses. SpaceX reported $15.9 billion in cash and cash equivalents at the end of March, according to its IPO filing.
Separately, SpaceX has signed an agreement with Reflection AI to provide additional computing capacity at Musk’s Colossus 2 data center. Reflection AI disclosed the deal on LinkedIn, with CNBC reporting that the arrangement could be worth up to $6.3 billion.
Credit rating agencies recently assigned SpaceX investment-grade ratings, reflecting confidence in its financial position despite its aggressive expansion plans. Moody’s issued a Baa1 rating, while Fitch assigned BBB+, both indicating moderate credit risk and sufficient capacity to meet financial commitments.
