SpaceX launches first corporate bond offering of at least $20 billion, just 10 days after IPO

Elon Musk's aerospace company SpaceX is set to issue its first corporate bonds roughly 10 days after completing the largest initial public offering in history.

The Wall Street Journal and Bloomberg reported Monday (local time) that SpaceX announced the bond offering after holding a call with investors that day.

According to sources, the offering will total at least 30.7 trillion won ($20 billion), with maturities ranging from five to 30 years.

SpaceX used a bridge loan in March to refinance debt inherited from X (formerly Twitter) and xAI, with $20 billion due within six months. The company plans to use the longer-dated bond proceeds to repay that short-term borrowing, with any remaining funds earmarked for general corporate purposes.

Adam Sarhan, CEO of 50 Park Investments, said the decision to issue bonds rather than shares was aimed at avoiding dilution of shareholder value.

SpaceX raised $85.7 billion through its IPO and is already estimated to hold more than $100 billion in cash. Still, as the AI boom has made investors increasingly willing to buy bonds from companies in the sector, SpaceX appears to be riding that wave to expand its available capital.

An analyst team at Oppenheimer led by Timothy Horan projected that SpaceX could accumulate $400 billion in net debt by 2031 — roughly three times the debt load of Oracle.

SpaceX is also generating cash flow through non-financial operations. According to CNBC, the company signed a deal Monday (local time) with open-source AI startup Reflection AI to provide computing power at $150 million per month, totaling $6.3 billion through 2029.

SpaceX is building Colossus 2, an AI infrastructure data center, and has previously supplied computing power to Anthropic and Google through similar agreements.