SpaceX reported that it made no bitcoin sales during the second quarter, but its stock declined before Wednesday’s opening session as investors weighed concerns around rising capital spending, free cash flow pressure, and an upcoming insider lockup expiration.
Shares of SpaceX dropped 11% in premarket trading Wednesday, with investors looking beyond the company’s stronger-than-expected first earnings results and focusing instead on its heavy investment commitments and a significant insider share release expected Thursday.
The company posted revenue growth of 92% year over year, reaching $7.8 billion and exceeding analyst estimates. Adjusted EBITDA nearly tripled to $3.5 billion, while SpaceX reduced its net loss to $541 million. However, the company spent $18.4 billion during the quarter as it continued funding the expansion of Starlink, Starship development, and AI infrastructure projects.
SpaceX kept its entire bitcoin reserve of 18,712 BTC unchanged throughout the quarter. The holdings were valued at approximately $1.1 billion at the end of June, highlighting the accounting implications of holding bitcoin as a public company. Under fair-value accounting rules, changes in bitcoin prices are reflected directly in quarterly financial results.
The value of SpaceX’s bitcoin holdings dropped by about $195 million during the quarter, creating additional swings in reported earnings.
JPMorgan, which increased its SpaceX price target from $225 to $240, said the company’s aggressive investment strategy could significantly increase future capital requirements. The bank estimates SpaceX may spend close to $200 billion annually on capital expenditures in both 2027 and 2028, adding pressure to free cash flow.
“We now forecast capex of nearly $200 billion in both 2027 and 2028, which adds further pressure to free cash flow in 2027, similar to what we are seeing among major hyperscale companies,” JPMorgan analysts noted.
The firm also highlighted Thursday’s lockup expiration, which could make 911.5 million shares eligible for trading. The move could increase SpaceX’s public float by 143%, although JPMorgan believes the potential impact may already be partly reflected in the stock price due to investor awareness of the event.
Raymond James kept its $800 price target for SpaceX, pointing to the company’s strong operational execution and long-term growth prospects.
SpaceX shares were last trading at $111.80.
