Update – May 21, 2026: Since this article detailing how investors could invest indirectly in SpaceX before it went public was originally published on April 23, 2026, some key developments have occurred:
- In mid-May, the U.S. Federal Communications Commission (“FCC”) approved the sale of EchoStar’s wireless spectrum to SpaceX. It also approved EchoStar’s $23 billion sale of wireless spectrum to AT&T (T).
- The approvals significantly derisk the situation, clearing one more hurdle on the way to the closing of the EchoStar-SpaceX transaction in late 2027. Additional liquidity from the AT&T transaction also provides greater safety for EchoStar investors.
- If you’re interested in learning another way to claim a stake in SpaceX before it goes public, the investment vehicle personally vetted by Jeff Brown remains available, at least for now… You can hear Jeff explain how to get access here.
The rest of this article has been lightly updated to reflect these developments and more current pricing…
Key Points
- EchoStar signed a deal to receive SpaceX shares in 2025, and it’s one of a few ways for investors to get exposure to SpaceX before it goes public later this year.
- EchoStar’s SpaceX stock has risen about 2.5 times in value already, and the upcoming initial public offering (“IPO”) could raise it even further.
- EchoStar’s stock may already be pricing in a $1.75 trillion valuation for the SpaceX IPO, depending on how investors are factoring in taxes on that stake.
EchoStar (SATS) is one of a handful of ways for investors to get exposure to SpaceX before the Elon Musk-helmed company goes public in June. As part of an asset swap in 2025, EchoStar received the right to receive $17 billion in cash and SpaceX stock.
It was a well-timed trade for EchoStar, as shares of SpaceX have soared. Musk has pushed up the value of his space company and has primed it for an IPO. If SpaceX goes public this year, it would highlight one of the strongest years for IPOs ever.
With an investment in SpaceX indirectly available now through EchoStar shares, does it make sense to jump in there rather than wait for a SpaceX IPO? Let’s dig into the details.
EchoStar: How to Invest in SpaceX Before Its Upcoming IPO
How exactly did EchoStar wind up with such a huge chunk of SpaceX before it went public?
During 2025, EchoStar made a few asset exchanges, effectively selling its terrestrial spectrum in a trade for cash and SpaceX stock:
- In September 2025, EchoStar traded its AWS-4 and H-Block spectrum licenses for $8.5 billion in cash and $8.5 billion in SpaceX stock. EchoStar also received $2 billion to cover interest payments until November 2027.
- In November 2025, EchoStar traded its AWS-3 spectrum licenses for about $2.6 billion in SpaceX stock.
These terrestrial spectrum licenses allow SpaceX’s Starlink ground network to communicate with standard mobile phones.
EchoStar and SpaceX both got another perk from the dealmaking. EchoStar can offer access to Starlink services – text, voice, and broadband – to its Boost Mobile subscribers. Starlink is working to drive traffic to its satellite-based services, recently also inking a deal with US Mobile.
It’s important to note that the deal is not expected to close until November 2027, so things could still fall through. In short, those SpaceX shares are not in EchoStar’s hot little hands just yet. And EchoStar is using other cash from the deal to pay off some high-cost debt and interest.
During the time of its deals, EchoStar acquired about 3% of SpaceX’s shares. That may not sound like a lot at first, but when those shares are part of a company being priced at more than $1 trillion – maybe even $2 trillion – the numbers add up quickly.
How Much is SpaceX Stock Worth Inside EchoStar?
As part of its 2025 transactions, EchoStar acquired the right to $11 billion in SpaceX stock at $212 per share. But the price of SpaceX has soared in recent months with new valuation rounds:
- July 2024: $112 share price at a $210 billion valuation
- December 2024: $185 share price at a $350 valuation
- July 2025: $212 share price at a $400 billion valuation
- December 2025: $421 share price at an $800 billion valuation
- February 2026: $526.59 share price at a $1.25 trillion valuation
So, the value of EchoStar’s stake has risen considerably since it first signed its deal less than a year ago, but its value could go even higher. SpaceX is touting a $1.75 trillion valuation on its IPO, and it’s even recently discussed a $2 trillion valuation.
At SpaceX’s current valuation of $1.25 trillion, EchoStar owns about $27.3 billion in SpaceX stock. EchoStar’s current market capitalization is about $39.2 billion, so investors are paying about $11.9 billion for the remainder of EchoStar’s business at current pricing.
Assuming the same share count, what would SpaceX’s share price be at the $1.75 trillion IPO figure that SpaceX has been discussing? And how valuable would EchoStar’s position be?
A $1.75 trillion valuation implies a share price of about $737 for SpaceX. This share price would make EchoStar’s stake worth about $38.2 billion – about $1 billion more than today’s market capitalization. Investors would be getting the rest of EchoStar’s business for a very low cost.
Plus, if you think there’s more upside for SpaceX stock beyond that $1.75 trillion IPO figure, EchoStar is highly likely to go along for the ride, too.
As SpaceX’s value has risen since the deal, EchoStar’s stock price has galloped higher. So, a first-day pop from the SpaceX IPO would likely boost EchoStar’s share price along with it. (New changes to Nasdaq’s index inclusion rules may send SpaceX stock soaring soon after its IPO.)
Risks of the EchoStar-SpaceX Deal
While buying EchoStar for its SpaceX stake may look attractive, it’s important for investors to keep in mind a few things.
- The deal is not completed and won’t be for some time. It could fall apart, and EchoStar might encounter significant downside in this situation. The stock is currently trading around $135 per share, but it was going for less than $20 in the previous 52-week period before it signed this deal with SpaceX. Without its SpaceX stock buoying its share price, EchoStar could plummet if the deal falls through. That said, the recent FCC approval removes one more potential roadblock on the way to the deal closing.
- The market value of EchoStar’s SpaceX stake differs from the after-tax value of it. How much could or would EchoStar receive if it must pay the full tax impact of its gain? And what are the alternatives that could reduce the tax burden to EchoStar? Relatedly, what will EchoStar do with its SpaceX stake? How will it use the money and for whose benefit? Those are a lot of questions to determine how much of the gain that investors get to keep.
- Just how valuable will the SpaceX stake be when the deal with EchoStar actually closes in late 2027? Many investors think SpaceX is vastly overvalued, as it’s trading at more than 100 times sales. Even if you think it isn’t overvalued, EchoStar won’t officially close the deal for months after the IPO, so it won’t be able to dispose of shares that it doesn’t actually own.
With SpaceX looking to find ways for insiders to cash out early, SpaceX stock may not be the “sure-fire” investment that so many people seem to think it is. In fact, SpaceX is showing several warning signs that investors should pay close attention to. So, if you want to own EchoStar, you must be comfortable with SpaceX as an investment.
One Alternative to Get SpaceX Exposure Now Beyond EchoStar: Buying Alphabet Stock
EchoStar is not the only way that investors can buy SpaceX before its IPO. That said, much of the value of the company is tied up in SpaceX stock, so it’s a good proxy for SpaceX before it debuts. But investors have alternatives to EchoStar, and one of them is Alphabet (GOOGL).
Yes, Alphabet – the company behind Google – holds a stake in SpaceX. A pretty big one, in fact. Alphabet owns a reported 7.5% position in SpaceX, meaning a $1.75 trillion IPO value could be worth around $130 billion to Alphabet.
That’s a huge number, but it pales next to Alphabet’s $4 trillion market cap, amounting to less than 4% of Alphabet’s market cap. SpaceX could double, for example, and it would barely move the needle at Alphabet. So, it’s not the best way to get exposure to SpaceX right now.
There’s even another alternative for investors to buy SpaceX shares before they go public. Here are the full details on this alternative way to get a piece of SpaceX.
Regards,
James Royal
Editor’s Note: SpaceX recently filed plans for what could become the largest AI infrastructure project in human history: up to 1 million orbital data-center satellites powered by the sun. Jeff Brown says this “Orbital AI” breakthrough could create the next generation of AI fortunes — potentially even bigger than Nvidia. He’s revealing the company he believes is best positioned to profit in this free video presentation.
