In order to raise money, SpaceX issues debt and reports $100.8 billion in cash

Days after its successful initial public offering (IPO) in the United States, Elon Musk’s firm, SpaceX, said that it has over $100.8 billion in cash and cash equivalents as of June 19. The company also launched its first bond offering on Monday.

After raising $85.7 billion in its initial public offering, the rocket and artificial intelligence business made its debut on the Nasdaq on June 12. Making it one of the most valuable corporations globally.

Despite the robust expansion of its Starlink satellite internet business. SpaceX has boosted its investments in AI infrastructure and the construction of its next-generation Starship rocket, which have affected its profitability.

Its revenue increased 33% to $18.67 billion last year. Although the company posted a net loss following heavy spending and the integration of xAI, Musk’s artificial intelligence company.

SpaceX shares fell about 7% at the start of trading.

The company did not disclose the amount or pricing terms of the proposed bonds. The funds would be used to pay down loans under its bridge loan facility, cover fees and related expenses, and for general corporate purposes, it said.

SpaceX has $15.9 billion in cash and cash equivalents at the end of March, according to its IPO filings.

Credit rating agencies handed SpaceX investment-grade ratings last week, indicating their trust in the company’s financial health while it pursues its expensive AI aspirations.

SpaceX’s debt is regarded as investment grade, involves a modest credit risk, and has enough capacity to satisfy its financial obligations, according to Moody’s «Baa1» rating and Fitch’s «BBB.»