SpaceX extends decline to 11% on lockup expiration and capex spending fears
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
SpaceX shares dropped 11% in premarket trading despite reporting stronger-than-expected first-quarter earnings. The company reported revenue growth of 92% to $7.8 billion and adjusted EBITDA nearly tripled to $3.5 billion, but it posted a net loss of $541 million. Investors focused on the company’s heavy capital expenditures and the impending expiration of an insider share lockup, which could increase the public float significantly.
Why it matters
The decline in SpaceX shares reflects investor concerns about the company’s massive capital spending—$18.4 billion in the quarter on Starlink, Starship, and AI infrastructure—that may strain free cash flow. Additionally, the lockup expiration on August 6 could make 911.5 million shares eligible for sale, potentially increasing the public float by 143%, which may affect share price liquidity and volatility.
Key context
SpaceX’s bitcoin holdings of 18,712 coins remain on the balance sheet and introduced earnings volatility due to a $195 million fair-value loss in the quarter amid bitcoin price swings. JPMorgan raised SpaceX’s price target, noting capital expenditures are expected to near $200 billion in both 2027 and 2028, which adds pressure on free cash flow. Raymond James maintained a high $800 price target, emphasizing operational strength despite share price volatility.
Key numbers and entities
SpaceX’s revenue increased 92% to $7.8 billion; adjusted EBITDA was $3.5 billion; net loss was $541 million. Capital expenditures in the quarter reached $18.4 billion. Bitcoin holdings numbered 18,712 coins valued at about $1.1 billion at quarter-end, with a $195 million loss in value. The lockup expiration could free 911.5 million shares, expanding the float by 143%. JPMorgan increased its price target from $225 to $240; Raymond James holds an $800 target. The share price at the time was $111.80.
What remains unclear
The source does not flag open questions or uncertainties beyond noting the addition of volatility to earnings from bitcoin price swings and that much of the lockup expiration impact may already be priced in by investors.