Companies like SpaceX borrowed capital immediately upon becoming public, but that borrowing is underwritten against multi-trillion dollar equity valuations rather than actual negative cash flows that would never justify lending in normal circumstances; if share prices collapse, that leverage will evaporate alongside it.
causalpending
Speaker
Mike GreenEvidence Quote
“SpaceX's very first action after getting public was to go out and borrow capital. That cap that borrowing is, um, underwritten not against the cash flow of SpaceX, which is fantastically negative and nobody in their right mind would lend that money to SpaceX in the absence of a multi-trillion dollar valuation.”
Created: 8/12/2026, 6:11:43 PM
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