SpaceX did not sell any of its bitcoin holdings during the second quarter, but the company’s shares declined ahead of Wednesday’s market open as investors focused on elevated spending plans, potential free cash flow challenges, and an upcoming insider share unlock.
SpaceX stock dropped 11% in premarket trading Wednesday despite a stronger-than-expected first earnings report, as market participants shifted attention toward the company’s aggressive capital investment strategy and a major lockup expiration scheduled for Thursday.
The company reported a 92% year-over-year increase in revenue to $7.8 billion, beating Wall Street expectations, while adjusted EBITDA surged nearly threefold to $3.5 billion. SpaceX narrowed its net loss to $541 million, but quarterly expenditures climbed to $18.4 billion as it continued expanding Starlink, developing Starship, and investing in AI-related infrastructure.
Throughout the quarter, SpaceX retained all 18,712 BTC held on its balance sheet. The bitcoin position was worth about $1.1 billion at the end of June, bringing renewed attention to the impact of crypto price movements on the company’s financial statements under fair-value accounting rules.
The value of SpaceX’s bitcoin holdings fell by around $195 million during the quarter, contributing additional fluctuations to its reported results.
JPMorgan raised its SpaceX price target to $240 from $225 but warned that the company’s growing investment needs could weigh on future cash flow. The bank now forecasts SpaceX’s capital expenditures could reach nearly $200 billion in each of 2027 and 2028, increasing pressure on free cash flow.
“We now estimate capex will approach $200 billion in both 2027 and 2028, creating additional free cash flow pressure in 2027, a pattern also visible among large hyperscale companies,” JPMorgan analysts said.
The bank also pointed to Thursday’s insider lockup expiration, which could allow 911.5 million shares to enter the market. The release could expand SpaceX’s public float by roughly 143%, although JPMorgan noted that investors have been aware of the event for months and much of the potential impact may already be priced into the stock.
Raymond James maintained its $800 price target, citing SpaceX’s continued operational strength and long-term growth opportunities.
SpaceX shares were trading at $111.80.
