Ron Baron Buys $1 Billion of SpaceX IPO Shares, Lifting Stake to $25 Billion
Updated
Updated · CNBC · Jun 15
Ron Baron Buys $1 Billion of SpaceX IPO Shares, Lifting Stake to $25 Billion
3 articles · Updated · CNBC · Jun 15
Summary
$1 billion of SpaceX stock bought in Friday's IPO lifted Baron Capital's holding to about $25 billion, even as the company debuted at a $2 trillion valuation.
Baron said the purchase was meant to prevent dilution as SpaceX sold new shares to the public, underscoring that he is holding the position rather than taking profits.
The firm has invested in SpaceX since 2017, when it was valued below $22 billion, and has joined 27 funding rounds since then.
SpaceX made up 33% of Baron Partners Fund and 25.5% of Baron Asset Fund as of March 31, leaving some Baron portfolios about half tied to Elon Musk-led companies including Tesla.
Baron said he sees SpaceX reaching a $20 trillion to $40 trillion valuation within 10 years, arguing Musk remains at least a decade ahead in rockets, satellites and networks.
Is SpaceX's $2 trillion valuation built on a future AI empire or a history of staggering financial losses?
As one man controls access to space and AI, what happens when his interests conflict with a nation's?
Inside SpaceX’s $1.75 Trillion IPO: Ron Baron's $25 Billion Bet, Starlink’s Profits, and the Tokenized Future of Investing
Overview
Billionaire investor Ron Baron has shown profound conviction in SpaceX, driven by his long-term vision for Starlink as the company’s main growth engine. He demonstrated this belief by making a $1 billion order for SpaceX shares ahead of its IPO and investing a total of $2 billion since 2017, when SpaceX was valued at $22 billion. Over time, his stake has grown to nearly $12 billion, and SpaceX now represents a significant portion of his Baron Partners Fund. Baron’s unwavering support highlights his confidence that Starlink will propel SpaceX toward a trillion-dollar valuation.