Blue Origin’s $130 billion leap opens a new chapter
Blue Origin now has a valuation and new, outside investors. Founded in 2000, CNBC reported last week that its founder, and up until now, sole investor, Jeff Bezos was closing in on a $10 billion fundraising round. If completed, the capital will put the private aerospace company’s valuation at $130 billion. Bezos is expected to contribute $2 billion to Blue Origin as part of the fundraise, with the hedge fund group Coatue Management putting in $4 billion. Reports also indicated there is strong investor demand to participate in the remaining $4 billion.1
The introduction of institutional investors to finance the Kent, Washington-based aerospace company is noteworthy, as it creates the possibility of shares becoming active in the secondary market. And Blue Origin, which has become a household name in its own right, and akin to its closest competitor, SpaceX, appears to be moving from well-publicized celebrity flights into space to new exploration ambitions.
Blue Origin’s rise as a premier space exploration company
Founded nearly twenty-five years ago, Blue Origin was built around the vision of making access to space more affordable through reusable rocket technology. But unlike SpaceX, which aggressively pursued commercial launch opportunities early on, Blue Origin spent years developing its technology largely behind closed doors while being funded almost exclusively by Bezos.
The private aerospace firm burst into the sphere of human minds and space flight when four private paying citizens were launched into space on Blue Origin’s New Shepard rocket in January of 2021. The launch created several firsts in space. Space pioneer, Wally Funk, 82 at the time, became the oldest person to go to space on New Shepard, along with the youngest person in space, 18-year-old Oliver Daemen. Also on board, Jeff and his brother Mark Bezos, who became the first siblings to fly into space together.
In the years since this first manned-flight other high-profile celebrities have been passengers on Blue Origin’s rockets including William Shatner, Michael Strahan, Katy Perry and Gayle King.2
From space tourism to scientific discovery
The paradigm in the space sector shifted in recent years as SpaceX rose to be a dominant force in the industry. Founded by Elon Musk, SpaceX has garnered multi-billion dollar commercial and governmental contracts, and in June, made its debut on the public markets at a record-setting $1.8 trillion in value.3
Blue Origin could be following a similar playbook, realizing that its revenue stream is better served in scientific discovery, rather than selling tickets to space. In January, it was reported that Blue Origin would suspend its space tourism program, in lieu of hyper focusing on lunar discovery.4
In May, it was announced that Blue Origin would contract with NASA to provide a landing vehicle to the moon as part of its Artemis II “return to the moon” program. The contract, valued at $3.4 billion, is part of a 3-part manned mission to the moon slated for 2027. Ironically as part of the deal, SpaceX will supply NASA with two additional lunar vehicles.5
Furthermore, Blue Origin has taken on the task of helping connect more humans back on earth. In recent months, Blue Origin announced they’ve been actively launching a new, satellite communications network dubbed, TeraWave. A likely competitor to SpaceX’s Starlink, TeraWave has aggressively launched more than 5,000 optically connected satellites. The program’s goal is to provide enterprise-grade wireless services around the globe and especially in underserved, rural areas.6
Blue Origin’s recent ambitions with NASA and TeraWave underscore the firm’s potential as a leading, emerging aerospace company, with no signs of slowing. In May, Florida’s Governor Ron Desantis announced Blue Origin would be expanding its Cape Canaveral-based manufacturing center, a $600 million add-on facility, and 500 new employees hired. The deal represents a combined partnership among Space Florida and the Florida Department of Transportation.7
Investor Takeaway
Blue Origin appears to be making its way to become a cutting-edge space exploration and scientific discovery firm, a dominant player and formidable competitor to newly publicly traded SpaceX. With the introduction of outside investors comes the potential for active shares in the market and a potentially intriguing opportunity for private market investor participation in the company.
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