SpaceX plans to conduct a secondary sale to company insiders and existing shareholders for $750 million.
Space Exploration Technologies Corp (SpaceX), an American spaceship manufacturer, a provider of space transportation services, and a communications corporation is set to raise a massive sum of $1.7 billion, a funding round that could push its valuation north of $127 billion. First reported by the New York Post citing unnamed sources, the funding round will see SpaceX sell its shares at $70, a 25% increment from the $56 it was priced at when it conducted a 10-for-1 stock split back in February.
As a privately held company, SpaceX is used to raising funds especially when it wants to conduct a megaproject. Previously, the firm raised funds for its next-generation Starship rocket as well as its data network offshoot, Starlink. While SpaceX is making quite a lot of advances in regard to its push to dominate the space industry, the latest funding round has not received as much enthusiasm as expected from prospective investors.
Per the reports, SpaceX plans to also conduct a secondary sale to company insiders and existing shareholders for $750 million. As the funding schemes will enable investors to liquidate some of their holdings in case there is a need for funds from them, SpaceX will also be able to give some form of equity to company loyalists.
Many have considered SpaceX as one of the major companies that will rewrite history by taking humans to the far ends of the space beyond the move. With Elon Musk known as an advocate of rebuilding a new human colony on Mars, the bulk of the company’s research has been centered on achieving this unique milestone.
While the New York Post confirmed the low demand in the funding round, it may be connected to the sexual harassment allegations made against CEO, Elon Musk by a former SpaceX flight attendant. While the vocal billionaire has called the accusations “wild allegations,” such news can have a profound impact on the optics of a firm, even though it is temporary.
Will New Funding Give SpaceX an Advantage Against Competitors?
Besides SpaceX, the race to control space travel is currently being championed by Jeff Bezos’ Blue Origins and Sir Richard Branson’s Virgin Galactic Holdings Inc (NYSE: SPCE). These duos are also appropriately funded and have a number of milestones to check the box for advancing in their push toward their ultimate space travel goals.
While Blue Origin founder, Jeff Bezos has actually been in a testflight where he and a couple of others flew to the edge of space through one of the company’s spaceships according to a previous Coinspeaker report. Virgin Galactic on the other hand has been selling reserved tickets to the public as one of its ways to generate revenue ahead of its upcoming commercial launch of space travels.
The race to dominate space is a heated one and funding is one of the major factors that can help win the race. SpaceX is looking to get a new boost with its recent covert funding round.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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