SpaceX's New Valuation and Investor Confidence
SpaceX is now the leading U.S. private company following a secondary share sale that has boosted its internal valuation to $800 billion, as reported by The Wall Street Journal. This new valuation surpasses OpenAI, which previously held the top spot, and more than doubles SpaceX's valuation from earlier this year when it stood at $400 billion.
Bret Johnsen, the company’s Chief Financial Officer, informed investors about the transaction recently. SpaceX, which is nearing its 25th anniversary, typically conducts these tender offers twice annually, making this a recurring event. However, the significant scale of this latest offering is a new development.
It remains to be seen if buyers will fully commit to the $800 billion valuation. Nevertheless, Elon Musk has cultivated a dedicated base of investors who continue to support the company, regardless of its escalating valuation.
Musk announced in June that the Texas-based company was projected to achieve $15.5 billion in revenue for the year. This update was shared on X, the platform where Musk frequently broadcasts his company's latest developments in real time.
Starlink's Growth and Deepening Military Connections
While SpaceX continues to lead in rocket launches, the growth of Starlink, its satellite internet service, is a significant development. Starlink currently serves over 8 million active customers, encompassing residential users, businesses, and airlines.
The revenue generated by Starlink is a substantial contributor to SpaceX's financial standing, lending credibility to the $800 billion valuation. The company has deployed approximately 9,000 satellites into low-Earth orbit to establish its global network and plans further expansion.
SpaceX also maintains strong ties with the military sector. In addition to its work with NASA, the company undertakes launches and satellite contracts for the Pentagon and the U.S. intelligence community, including the deployment of classified national security payloads and technology that are not publicly disclosed.
Commercial satellite missions are now only one facet of SpaceX's operations. The defense sector has become increasingly integral to the company's mission as governments seek direct space capabilities.
Beyond satellite deployment, SpaceX is developing technology to enable direct satellite-to-smartphone connectivity without the need for cellular towers. This initiative gained momentum when SpaceX agreed to acquire substantial radio spectrum assets from EchoStar, another satellite company. In total, SpaceX committed over $20 billion in cash, stock, and debt to secure these frequencies.
"We are so pleased to be doing this transaction with @EchoStar and working with operators across the globe to advance our mission to end mobile dead zones everywhere on Earth," stated Gwynne Shotwell, the company’s President, in a post on X.
SpaceX's Bitcoin Transactions Draw Crypto Trader Attention
As financial markets assessed SpaceX's $800 billion valuation, the company also made a significant Bitcoin transfer that captured the attention of cryptocurrency traders. Arkham Intelligence reported that SpaceX moved 1,083 BTC last Friday.
This was not the first such transaction. It marked the eighth Bitcoin transfer associated with SpaceX and occurred as Bitcoin's price dipped to $91,000, preceding the day's crypto options expiry and the release of new U.S. inflation data.
The transfer details were precise. A portion of 283 BTC, valued at $31.33 million, remained in a wallet labeled bc1qrzg. An additional 0.16248 BTC, valued at approximately $162.48, was sent to Coinbase Prime, likely for immediate liquidity.
The remaining 800 BTC, valued at $73.73 million, was transferred to another holding wallet identified as bc1qyh. As is typical with these transactions, SpaceX provided no official comment or explanation.
In parallel with these financial activities, SpaceX continues to invest heavily in Starship, its large-scale rocket designed for lunar missions under contract with NASA.