Australia's richest person invests $1.4B in Elon Musk's SpaceX
What's the story
Australia's richest person Gina Rinehart has made a major investment in Elon Musk's SpaceX. The investment was made through her company, Hancock Prospecting, as SpaceX started trading on share markets on Friday. While the exact amount of the investment has not been disclosed by Rinehart, it is said to be at least $1.4 billion.
Confidence expressed
Rinehart praises Musk's vision
Rinehart's investment in SpaceX is a testament to her faith in Musk, especially after his company's record-breaking initial public offering (IPO). The Australian billionaire praised Musk for not just envisioning the future but also creating companies that can deliver it. "Elon has done what very few people in history have done - he has not just imagined the future, he has built companies capable of delivering it," Rinehart said.
Unique perspective
SpaceX raised $75B from IPO
Rinehart described SpaceX as a unique business, led by an exceptional person with technical expertise and operating in critical sectors with long-term potential. To note, the rocket, satellite and AI company raised $75 billion from its record-breaking IPO.
Future goals
SpaceX has plans to launch data centers into space
SpaceX has ambitious plans to launch up to a million data centers into space and establish colonies on the Moon and Mars. However, its prospectus also warns that it may never be profitable as it operates at a loss of billions annually. "Our mission is to build the systems and technologies necessary to make life multiplanetary," reads SpaceX's investor prospectus.
Collaboration potential
Hancock Prospecting may work with SpaceX as supplier
Hancock Prospecting's CEO, Garry Korte, said they could work with SpaceX as a supplier of critical minerals for its advanced technology infrastructure. "We look forward to the potential of working with the SpaceX team on its exciting journey," Korte said. The company has already seen a 20% return on its investment since shares were purchased at $135 and closed at $160.95 on Friday.
Investment size
Largest US shareholding for Hancock Prospecting
If reports are accurate, Rinehart's investment in SpaceX could be Hancock Prospecting's largest US shareholding. The company's other US-dollar holdings include $0.7 billion in an Invesco Nasdaq index fund, $0.7 billion in MP Materials (a rare earths company), and smaller amounts in Amazon, Meta, Google's parent company Alphabet and Musk's Tesla.