Khaberni - The share of the American company "SpaceX" plummeted by more than 10% today, Monday, after it announced for the first time its recourse to the bond market, benefiting from a driving force following its public share offering, which pushed its cash reserves to exceed $100 billion, at a time when the company is intensifying its spending on its plans in the field of space rockets and artificial intelligence.
The French news agency reported that the share owned by trillionaire Elon Musk was traded at $165.51 at 4:45 PM Greenwich Mean Time, marking the third decline in the company's shares in three consecutive days.
SpaceX's price was listed on the Nasdaq in New York on June 12th, after the company raised $85.7 billion from its initial public offering, making it one of the largest companies in the world in terms of market value.
Bond Offering Objectives
SpaceX's bond offering today is part of its efforts to restructure its balance sheet by replacing short-term transitional financing with long-term debt, which can help it finance ambitious and costly expansions in artificial intelligence and next-generation space rockets.
The company did not disclose the size or terms of the proposed bond offering, but said that the proceeds from the bond offering will be used for general corporate purposes, as well as for repaying loans and covering related fees and expenses.
Bloomberg reported last week that "SpaceX" is seeking to raise at least $20 billion from the first bond offering.
Although its shares have been offered to the public through the American stock exchange, Elon Musk retains 82% of voting rights in SpaceX after the initial public offering.
Adam Sarhan, CEO of "50 Park Investments" said that with Musk maintaining overwhelming control in voting through a dual-class structure, the company's bond issuance preserves the economic ownership of existing shareholders without the need to issue new shares.
Sarhan added "Clearly, choosing debt over additional shares prioritizes avoiding further dilution of shareholder stakes."
Increase in Revenue and Spending
SpaceX has increased its spending on artificial intelligence infrastructure and the development of the Starship rocket, investments that have impacted profitability despite the strong growth achieved by its satellite internet operations through Starlink.
The American company's revenue jumped 33% to $18.67 billion last year, despite the company recording a net loss following intensive spending and the integration of Musk's artificial intelligence project "X AI".
SpaceX ranks fourth among the largest companies in the world in terms of market value, after Nvidia, Alphabet, Apple, and Microsoft.
