Launching its first-ever notes offering on Monday, Elon Musk’s SpaceX reported having over $100.8 billion in cash and cash equivalents as of June 19, only days after its successful U.S. stock market IPO.
After generating $85.7 billion from its initial public offering, the rockets-to-AI company became one of the most valuable companies in the world when it debuted on the Nasdaq on June 12.
Despite significant growth at its Starlink satellite broadband company, SpaceX has boosted spending on AI infrastructure and the development of its next-generation Starship rocket, investments that have affected profitability.
Its revenue grew 33% to $18.67 billion last year, despite the company recording a net loss following hefty investment and the integration of Musk’s artificial intelligence venture, xAI.
Early trading saw a 7% decline in SpaceX shares.
The proposed notes’ size and pricing terms were not disclosed by the corporation.
It stated that the revenues would be utilized for general company operations, related fees and expenditures, and the repayment of borrowings under its bridge lending arrangement.
According to its IPO filing, SpaceX had $15.9 billion in cash and cash equivalents at the end of March.
Last week, credit rating agencies gave SpaceX investment-grade ratings, indicating their trust in the company’s financial health while it pursues expensive AI initiatives.
SpaceX’s debt is regarded as investment-grade, involves modest credit risk, and has enough capacity to satisfy its financial obligations, according to Moody’s “Baa1” rating and Fitch’s “BBB.”
