According to the report, the company recorded a profit of $55 million on revenue of $1.5 billion during the first three months of the year after two consecutive years of losses.
Elon Musk‘s aerospace company, SpaceX, has managed to turn a profit in the first quarter of 2023, propelled by its rapidly increasing revenue, The Wall Street Journal reported Thursday, citing internal documents.
WSJ said the financial documents it reviewed showed that the first-quarter results were labeled “preliminary”. In contrast, the annual results are considered final, offering a more comprehensive understanding of the company’s performance over the past year.
SpaceX Now Valued at $150 Billion
The company, founded over two decades ago, has emerged as a dominant force in the US space industry, known widely for its satellite-internet enterprise, Starlink. Some of its major customers include NASA, which relies on its products for transporting astronauts to and from the International Space Station.
According to the report, the company’s financial trajectory has been marked by rapid growth, recently leading to an estimated valuation of around $150 billion during an employee stock sale. This valuation puts SpaceX on par with industry giants like Intel and Disney.
Before SpaceX’s modest quarterly profit in 2023, the company reported approximately $5.2 billion in total expenses for the preceding year, a significant increase from the $3.3 billion recorded in the year prior.
SpaceX Faces Setback in Launching Starship
Despite its financial successes, SpaceX has also faced setbacks, notably the test flight of its Starship in April, which ended prematurely due to technical issues. The company is required to obtain regulatory approval before attempting another flight.
Additionally, SpaceX’s financial resources have been channeled into ventures like Starlink, a satellite-based internet service, and establishing a new factory in Texas.
Last year, SpaceX allocated significant funds to areas including employee salaries, materials, and spacecraft depreciation, demonstrating its commitment to advancing its projects. The company has also invested heavily in research and development, showcasing its dedication to innovation.
SpaceX Sells Its Bitcoin Holdings
As per the WSJ report, SpaceX held approximately $373 million worth of Bitcoin (BTC) on its balance sheet in 2021 and 2022 and has sold the assets.
While the exact extent of the sale remains undisclosed, indications from the reviewed documents suggest that the crypto asset was indeed liquidated.
In 2021, Musk said he acquired BTC for an undisclosed amount. Shortly after, he also revealed that his company, Tesla, would invest $1.5 billion in the asset, leading to a notable increase in BTC’s value at the time.
Tesla’s Q2 2023 report confirmed the sale of almost all its BTC holdings, retaining only $184 million, marking a conversion of roughly 75% from the initial $1.5 billion investment.