Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) disclosed in its second-quarter SEC filing that its stake in SpaceX (NASDAQ: SPCX) was worth approximately $94 billion as of June 30.
The history behind that figure stretches back to January 2015, when Google and investment firm Fidelity together put $1 billion into SpaceX for a combined stake of just under 10%.
SpaceX now carries a $1.5 trillion market value, roughly 150 times what the entire company was worth during that funding round more than a decade ago.
Despite the enormous paper value, Alphabet cannot currently sell a single share of its SpaceX position, as the entire stake remains restricted from sale.
About $80 billion of the stake sits under short-term restrictions tied to the standard lockup period following SpaceX’s initial public offering, with the remaining $14.1 billion locked up through the third quarter of 2027.
The stake nonetheless drove a dramatic surge in Alphabet’s reported profits, with second-quarter net income rising 298% year over year to $112.1 billion and earnings per share climbing 294% to $9.11.
A $99.0 billion gain on equity securities, primarily reflecting unrealized gains from SpaceX and a private company reported to be AI developer Anthropic, was the key driver behind those results.
Unrealized gains mean Alphabet marked up shares it is not currently allowed to sell, so no cash actually changed hands from the SpaceX position.
Investors largely looked past the windfall and focused instead on spending, as Alphabet raised its capital spending guidance for 2026 to between $195 billion and $205 billion, up from the $180 billion to $190 billion range set in April.
Free cash flow swung to negative $5.9 billion for the quarter, compared to a positive $10.1 billion in the first quarter, highlighting the tension between paper wealth and actual liquidity.
Alphabet also raised $49.6 billion in June by selling new stock, even while sitting on $94 billion in SpaceX shares it cannot touch, since locked-up paper gains do not fund data centers.
Shares of Alphabet fell about 7% Thursday afternoon following the quarterly report, suggesting investors were more focused on capital expenditure growth than the unrealized SpaceX windfall.
The SpaceX stake amounts to roughly 2.4% of Alphabet’s approximately $3.9 trillion market capitalization, making it a meaningful bonus for shareholders rather than the core investment thesis.
Alphabet currently holds an effective stake of about 4.9% in SpaceX, down from roughly 6% before recent dilution, after holding the position for more than a decade.
SpaceX shares have had a turbulent public debut, going public at $135 in June, peaking at $225.64, and trading at approximately $116 as of the report, a decline of nearly 49% from the high.
Restrictions on Alphabet’s SpaceX stake begin easing after SpaceX delivers its first earnings report, scheduled for August 4, potentially opening the door to future share sales.
Alphabet has not signaled any intention to sell, but a holder with $94 billion of stock and a capital spending plan approaching $200 billion has clear financial incentives to consider it once permitted.
SpaceX shares have also fallen since June 30, meaning the stake is already worth less than the value reflected in the filing, a reminder that paper gains move in both directions.
For Alphabet shareholders, the SpaceX windfall remains a secondary consideration, with the investment case still resting on operating results where revenue grew 24% year over year and Google Cloud continued to accelerate.
