SpaceX (SPCX) shares fell around 16% on June 22, after the company confirmed its first-ever bond offering. The drop marked the stock’s worst single session since its June 12 debut and extended a three-day losing streak.

Shares closed at $154.60, just 14% above the $135 IPO price and roughly 31% below their all-time high of $225.64.

Why SPCX Stock Is Falling

SpaceX filed with the U.S. Securities and Exchange Commission on Monday to offer senior unsecured notes to qualified institutional buyers. The company did not disclose pricing, but Bloomberg reported the deal targets at least $20 billion.

SpaceX plans to use the proceeds to repay a bridge loan it took on earlier this year when it acquired Elon Musk’s xAI startup in February. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley provided that financing and will manage the new deal, according to Reuters.

Jose Torres, senior economist at Interactive Brokers, told clients investors are “wary of the substantial cash required to fund technological ambitions.”

Post-IPO Slide in Context

SpaceX’s historic Nasdaq debut raised $75 billion at $135 per share. After opening at $150 and surging to $225.64 by June 16, the stock briefly ranked among the world’s five most valuable public companies, leapfrogging Amazon and Microsoft.

Multiple pressures have stacked up. A $60 billion Cursor acquisition added more dilution. S&P Global projects negative free cash flow through 2029, citing ongoing Starship and AI capital requirements.

Lockup expirations add more risk. Jeff Jacobson, strategist at 22V Research, estimates insiders could sell up to 44% of SpaceX shares by early September, expanding the current tradeable float by approximately 900%.

SpaceX also disclosed $100.8 billion in cash as of June 19. Both Fitch and Moody’s assigned investment-grade ratings to the proposed notes, citing Starlink’s recurring revenue and SpaceX’s dominant launch position.

Whether those strengths steady sentiment may depend on the company’s first public earnings report, due August 6.

Source: BeInCrypto