SpaceX raises initial capital through bond issuance after its IPO, aiming to expand its AI and Starship businesses.

SpaceX is restructuring its finances just days after going public by issuing bonds to repay short-term debt, amidst plans to expand its data centers, develop AI, and improve its Starship rocket.

June 23, 2569 at 07.24:XNUMX a.m., Reuters reported that Elon Musk's SpaceX has announced its first notes offering. Since its listing on the Nasdaq on June 12, the company has reflected its efforts to restructure its balance sheet, shifting from reliance on short-term bridge loans to long-term funding to support its AI expansion plans and the development of new-generation rockets, which require significant investment.

This fundraising follows SpaceX's successful IPO, which raised $85,700 billion, making it one of the world's most valuable companies and surpassing $100,000 billion in cash reserves.

however SpaceX shares fell 9% in early Monday trading, marking their third consecutive day of decline. After investors began reassessing the stock's value following the strong buying interest during the initial public offering.

Currently, Musk still holds complete control of the company, with approximately 82% of the voting rights through a dual-class share structure. Analysts believe that choosing to issue bonds instead of raising capital through new shares is a strategy that helps avoid reducing the shareholding of existing shareholders.

"Issuing bonds allows the company to raise funds without affecting its ownership structure and reflects management's desire to avoid reducing shareholder equity." Adam Sarhan, CEO of 50 Park Investments, said:

In recent years, SpaceX has heavily invested in AI infrastructure, including the development of its new Starship rocket series. While this lays the foundation for long-term growth, it has put pressure on the company's profitability, even though its Starlink satellite internet business continues to grow strongly.

SpaceX's revenue increased 33% last year to $18,670 billion, but the company still incurred a net loss due to significant capital expenditures, including costs associated with Musk's AI acquisition, xAI.

The company did not disclose the value or interest rate of the bonds to be offered, stating only that the proceeds would be used for the company's general purposes, including repayment of short-term loans and related expenses.

In addition, SpaceX has signed an agreement with Reflection AI to provide additional computing power through the company's Colossus 2 data center. CNBC reports that the value of this contract could be as high as $6,300 billion.

Credit rating agencies have given a positive outlook on SpaceX's financial position. Moody's assigned a Baa1 credit rating and Fitch Ratings a BBB+ rating, placing the company in the investment grade category, reflecting confidence in its ability to repay debt and support large-scale future investment plans.

refer : www.reuters.com

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