Google spent years as a low-key backer of SpaceX. This week it showed what that patience is worth. In a quarterly filing, Alphabet said its Google unit holds $94.1bn in SpaceX shares, following the rocket company’s record IPO.
Google was an early investor, and more recently struck a large compute deal with the company. The stake has quietly padded Alphabet’s profit as SpaceX’s value climbed. The disclosure lands days after the Nasdaq debut that made SpaceX a public company.
Locked up, for now
Most of the holding sits frozen. After an IPO, big shareholders usually cannot sell straight away. Google said $80bn of its SpaceX shares carry “short-term sale restrictions.” Another $14.1bn stays restricted through the third quarter of next year, the filing said. The paper gain is large. The cash is not yet spendable.
The lock-ups matter because SpaceX shares have swung hard since the debut. The stock slid as the post-listing rally cooled. A holder who cannot sell rides those swings on paper, for better or worse.
