Alphabet Holds Restricted $94 Billion Stake in SpaceX
In Alphabet's second-quarter report, the company revealed that it holds an estimated $94 billion stake in SpaceX as of June 30. This represents a significant increase from its initial investment with Fidelity back in January 2015 when they collectively invested $1 billion for nearly 10% ownership. Today, SpaceX's valuation has surged to around $1.5 trillion — about 150 times the value it held during that funding round. Despite this substantial unrealized gain, Alphabet is currently unable to sell any of its shares due to restrictions placed on them. Approximately $80 billion worth are under short-term lockups typical after an IPO, while another $14.1 billion remains restricted until at least the third quarter of 2027. The revelation highlights how much this investment has contributed positively to Alphabet's reported profits; however, since these gains remain unrealized and non-liquidatable, they haven't significantly impacted investor sentiment or stock performance directly.
Topics: Alphabet capital gains SEC filing SpaceX