It appears that the sky might not be the limit for SpaceX after the aerospace company received a massive boost in its valuation this week. This comes on the heels of a reported round of equity funding last week that totaled $850 million. The company founded by Elon Musk now holds a $75 billion valuation, representing a 60% surge since August of 2020.
SpaceX was carrying a valuation of $44 billion back in August, according to Baron Capital. At that time, the company had just completed a round of funding totaling $2.1 billion. Last week’s round of funding was reportedly fostered when SpaceX offered shares at a price of $419.99. Eagle-eyed readers will note that the share price is only one cent away from $420. Nice.
As the world’s most recognizable private space firm, SpaceX enjoyed its share of positive press over the last year, from its various launches and tests, to the soft launch of its intriguing Starlink satellite internet service. Late in 2020, Starlink began a beta test with customers, offering speeds of up to 150Mbps with low latency. Eventually, SpaceX plans to offer the internet service worldwide.
The billions that SpaceX is raising are incredibly important for the company’s future growth. The satellite array, or constellation of orbital equipment that the Starlink project requires for large-scale deployment, is expected to cost north of $10 billion. It is estimated that Starlink could generate as much as $30 billion in annual revenue once fully operational.
Musk has mentioned previously that Starlink will be broken off from SpaceX in the future and will have an IPO once that cash flow situation becomes more clear.