Billionaire Ron Baron believes that his $25 billion stake in Elon Musk’s rocket company, SpaceX (SPCX), will increase in value over time.
In a new CNBC interview, Baron Capital’s founder and CEO he says he expects the company to make “hundreds of billions of dollars” from its SpaceX investment.
Baron explains the math of how he thinks SpaceX will go from a market of $2 trillion to $14 trillion in ten years.
“And I think that in 10 years, the investment will go from $13 or $14 billion from Starlink to almost a trillion.” So I think there will be a trillion dollars in revenue in 10 years, and about $700 or $800 billion in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and the whole $1 trillion is going. The company is now valued at $2 trillion.
On top of Starlink, Baron suggests that SpaceX may launch a data center in space next year to generate additional revenue.
“So you have compute AI. It’s a data center in space. If you want to have AI, you have to have a data center. A data center, you can’t build on Earth anymore,
in the world again, in the United States, without interfering with politics.”
SPCX is trading at $191.82 at the time of writing.
Follow us X, Facebook and Telegram
Don’t Miss Out – Sign up to receive email notifications straight to your inbox
Swimming Daily Hodl Mix
 
Disclaimer: The views expressed in Daily Hodl are not financial advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any assets including cryptocurrencies, nor is The Daily Hodl a financial advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image Created: Midjourney
