Key facts
- Hancock Prospecting, owned by Australia's wealthiest person Gina Rinehart, invested over $1 billion in SpaceX's IPO.
- SpaceX's IPO raised $75 billion, valuing the company at $2.1 trillion on its debut.
- Rinehart expressed confidence in SpaceX's AI and long-term potential, praising Elon Musk's leadership.
- Hancock Prospecting sees potential for future collaboration with SpaceX on critical minerals supply.
- The investment reportedly yielded a 20% return for Hancock Prospecting shortly after the IPO.
Gina Rinehart's Hancock Prospecting has made a substantial investment in Elon Musk's SpaceX, which recently began trading publicly. The Australian billionaire's company secured shares during SpaceX's initial public offering, with reports suggesting the investment is over $1 billion. Rinehart expressed strong confidence in Musk and SpaceX, highlighting the company's technical prowess and its crucial role in sectors with long-term potential, particularly in AI infrastructure. She praised Musk for building companies that deliver the future and maintain American technological leadership.
SpaceX raised $75 billion in its IPO, achieving a valuation of $2.1 trillion on its first day of trading. The company's ambitious goals include launching up to one million data centers into space and establishing colonies on the moon and Mars, though its prospectus acknowledges potential unprofitability and annual losses in the billions. SpaceX's mission statement focuses on making life multiplanetary and extending consciousness to the stars.
Rinehart specifically noted excitement about SpaceX's AI prospects, in addition to its existing work in rocket technology and the Starlink satellite communication network. Garry Korte, CEO of Hancock Prospecting, indicated the company's use of the Grok AI platform and potential to act as a supplier of critical minerals for SpaceX's advanced technology infrastructure. Hancock Prospecting has reportedly already achieved a 20% return on its investment, with shares purchased at $135 and closing at $160.95.
If the reported investment of over $1 billion is accurate, SpaceX would become Hancock Prospecting's largest US shareholding. Investors, including those in Australian superannuation funds, are expected to indirectly back SpaceX as it becomes part of Nasdaq 100 index funds. Elon Musk retains majority control of SpaceX. The company is now the eighth-largest on the NASDAQ, valued above Tesla and Meta, and behind tech giants like TSMC, Amazon, Microsoft, Apple, Google, and Nvidia.