SpaceX’s anticipated public offering could unlock enormous value for shareholders who don’t even realize they own pieces of Elon Musk’s rocket company. While most investors focus on direct exposure to the space economy, two publicly traded firms have quietly accumulated stakes that position them to benefit massively when SpaceX eventually goes public.
The private space company’s valuation has soared past $200 billion in recent funding rounds, making it one of the most valuable private companies in history. When that value becomes accessible to public market investors, the ripple effects will extend far beyond SpaceX itself.
Alphabet’s Venture Arm Holds the Larger Position
Google’s parent company Alphabet owns a meaningful stake in SpaceX through Google Ventures, its investment arm that participated in multiple funding rounds dating back over a decade. The exact size of this holding remains undisclosed, but estimates suggest it could be worth several billion dollars at current private market valuations.
Alphabet originally invested $900 million in SpaceX during a 2015 funding round, alongside Fidelity Investments. That investment has likely multiplied in value as SpaceX’s valuation climbed from roughly $12 billion to its current $200 billion-plus level. The company has continued participating in subsequent funding rounds, maintaining and potentially expanding its ownership percentage.
For Alphabet shareholders, this represents a hidden asset that doesn’t receive much attention in quarterly earnings calls or investor presentations. The company’s “Other Bets” segment, which includes various experimental projects, doesn’t break out investment gains from its venture capital activities. Yet this SpaceX stake could represent one of Google Ventures’ most successful investments ever, potentially rivaling some of Alphabet’s core advertising revenue in terms of absolute dollar impact when SpaceX goes public.
Bank of America’s Smaller But Significant Exposure
Bank of America has also built a position in SpaceX, though through a different route. The bank’s investment banking division has served as a financial advisor and underwriter for SpaceX in various funding rounds, and the company has taken equity positions as part of these relationships.
While Bank of America’s stake appears smaller than Alphabet’s, it still represents a potentially valuable asset for the bank’s shareholders. Financial institutions often receive equity as part of their compensation for providing investment banking services, and SpaceX’s dramatic valuation increases have made even small percentage holdings extremely valuable.
The IPO Timeline Remains Uncertain
Elon Musk has repeatedly stated that SpaceX won’t go public until the company achieves regular flights to Mars, a timeline that could extend well into the next decade. However, the company’s Starlink satellite internet division might spin off as a separate public entity much sooner, potentially as early as 2025 or 2026. Either scenario would unlock value for existing SpaceX investors.
The delay in going public has actually benefited early investors like Alphabet, allowing the company’s valuation to compound privately without the scrutiny and volatility of public markets. SpaceX’s revenue has grown dramatically through its satellite launch services and Starlink internet subscriptions, supporting higher valuations in each private funding round.
Recent secondary market transactions have valued SpaceX at $200 billion or higher, making it more valuable than most companies in the S&P 500. When this value eventually becomes accessible to retail investors through a public offering, the sudden liquidity could create significant wealth effects for existing stakeholders.
The space economy itself continues expanding, with satellite internet, space manufacturing, and eventual Mars colonization representing multi-trillion-dollar opportunities over the coming decades. SpaceX has positioned itself at the center of this growth, controlling both the transportation infrastructure through its rockets and a major revenue stream through Starlink’s internet services.
Neither Alphabet nor Bank of America emphasizes their SpaceX exposure in investor communications, treating these holdings as relatively minor components of much larger business portfolios. But when SpaceX’s IPO finally arrives, these “minor” investments could generate headlines and materially impact both companies’ stock prices. The question isn’t whether SpaceX will eventually go public, but how much additional value these stakes will accumulate before that moment arrives.
