SpaceX shares tumbled more than 10% on Monday, and if the decline holds at the close, it would mark the third consecutive session of losses, signaling a clear cooling of the stock’s initially strong post-IPO rally.
Tech giants’ AI investments are increasingly exceeding their free cash flow capacity, with global AI-related bond issuance projected to approach $570 billion in 2026.
June 22 (Reuters) – On Monday (June 22) local time, SpaceX announced the issuance of senior unsecured bonds and disclosed that the company holds approximately $100.8 billion in cash.
As of the time of writing, shares of SpaceX fell more than 10% following the announcement in Monday’s U.S. trading session.
SpaceX stated that proceeds from this financing will be used to repay bridge financing and for other general corporate purposes.
This marks SpaceX’s first bond issuance, just over a week after its blockbuster initial public offering (IPO). Following the exercise of the greenshoe option by underwriters, the IPO ultimately raised nearly $86 billion, setting a historic record.
The IPO also made SpaceX founder and CEO Elon Musk the world’s first trillionaire.
After debuting on the Nasdaq on June 12, SpaceX shares surged for several consecutive sessions, with its market capitalization briefly surpassing Amazon to become the world’s fifth most valuable company, trailing only Nvidia, Apple, Google, and Microsoft.
However, since last Thursday, SpaceX’s share price trajectory has reversed. If it closes lower today, it will mark the third consecutive day of declines.
Last Friday, media reports indicated that SpaceX was preparing to meet with investors this week to discuss a bond issuance plan of approximately $20 billion. The company aims to use the financing to support its large-scale artificial intelligence (AI) strategy, including long-term plans to build data centers in space.
In February of this year, Musk pushed for a merger between SpaceX and his AI company xAI, which had already completed a merger with Musk’s social media company X last year.
As major tech companies’ AI spending continues to expand and increasingly exceeds what their own profits can cover, debt financing is becoming an increasingly important source of capital for them.
According to data from Bank of America, the five hyperscalers – Amazon, Alphabet, Meta, Microsoft, and Oracle – collectively issued $121 billion in U.S. corporate bonds in 2025, compared to an average annual issuance of $28 billion from 2020 to 2024.
Not only are cloud computing giants raising funds through bond issuance, but Nvidia, the “AI pick-and-shovel seller,” also issued investment-grade bonds worth $25 billion last week.
According to Morgan Stanley’s forecast earlier this month, global AI-related bond issuance in 2026 is expected to approach $570 billion, more than doubling last year’s figure.
