SpaceX Just Raised $85.7 Billion From Its IPO. Why Did the Company Raise Another $25 Billion by Selling Bonds?

Space Exploration Technologies (NASDAQ: SPCX) just conducted one of the largest IPOs in history. The company aimed to raise around $75 billion in new capital. Due to high demand, however, the company ended up raising a total of $85.7 billion once underwriter options were included.

Many investors were then surprised to see the company return to capital markets just weeks after the IPO, raising an additional $25 billion through a bond sale. According to CNBC, the sudden bond deal "highlighted the group's intense financing needs, capital spending plans and future refinancing obligations."

Let's break down exactly what that means.

Image source: Getty Images.

Here's why SpaceX raised another $25 billion in capital

While many think of SpaceX as a space stock, the company is actually an artificial intelligence (AI) stock. More than 90% of the company's claimed total addressable market is exclusively related to AI opportunities.

Long-term, AI may not be a capital-intensive business. Once data centers are built and software is designed, deploying these services should be relatively low-cost, aside from the energy requirements. However, renewables like solar could further increase long-term service deployment costs.

Right now, however, most AI infrastructure businesses are extremely capital-intensive. Huge amounts of infrastructure need to be built, all using pricey third-party GPUs and strained energy supplies. These are the "intense financing needs" and "capital spending plans" the CNBC report is referring to.

The CNBC report includes one other rationale for the bond sale: "future refinancing obligations." It's important to remember that SpaceX is not profitable. In 2025, the company lost around $4.9 billion.

If SpaceX wants to continue spending heavily to scale its AI business -- plus invest in other capital-intensive areas like rocket development and satellite launches -- the company may not be profitable for years to come. Therefore, SpaceX will need to continue to tap capital markets to stay financially afloat.

In short, SpaceX will need a lot of capital to survive and grow, now and in the future. Raising as much capital as possible while optimism is high seems like a smart strategic decision.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.