Starlink IPO: What You Need To Know and How To Buy
2020 was a great year for IPOs, despite the economic upheaval brought about by the pandemic. However, things started looking even better in 2021, allowing IPOs to surge.
Starlink, currently being operated by SpaceX, it’s still not available to the public. However, Gwynne Shotwell, President of SpaceX, said last year that Starlink could potentially present an initial public offering.
Musk says he will list Starlink publicly when its “cash flow becomes more predictable.” What does that mean for investors? Let’s explore.
What Is Starlink?
Starlink is a broadband Internet system that currently meets consumers’ world wide web needs in 11 countries, although the plan is to expand service to span the globe.
Currently, the system is being enhanced in several locations to provide speeds ranging from 50Mb/s to 150Mb/s with 20ms to 40ms latency.
What Starlink Provides
Starlink provides high-speed Internet access to users. The ambitious project utilizes the Starlink constellation, which comprises a massive network of interlinked satellites.
A SpaceX Falcon 9 rocket carries nearly 60 Starlink satellites to low-Earth orbit every few weeks. In June 2021, there were more than 1,500 active satellites from Starlink, making it the largest constellation of its sort.
Skylink plans to launch tens of thousands of satellites into low-Earth orbit, providing low latency and high-speed Internet across the globe. At this rate, it won’t take them very long to reach that goal.
How Does Starlink Make Money?
Starlink makes money by selling Internet subscriptions to consumers. Currently, it’s in beta testing and has ten thousand users.
The company’s service is $99 a month, with a $400 one-time fee to get the kit, including a Wi-Fi router, tripod and terminal to connect to the constellation.
Musk told reporters that the internet connectivity industry generates roughly $1 trillion annually and that Starlink could bring in 3-5% of this revenue, which translates to $30-50 billion per year.
But it’s also important to keep in mind that building Starlink will cost around $10 billion, a substantial investment even for a tycoon like Musk.
Why Does Starlink’s IPO Stand Out?
Two words: Elon Musk. A single tweet from the billionaire can cause major fluctuations in the cryptocurrency market. Similarly, when he said that he will try to give preference to long-term Tesla shareholders in the Starlink IPO, Tesla’s stocks shot up.
Musk’s influence within the market cannot be overstated, so it’s understandable that investors would be excited about Starlink’s potential.
How To Buy Starlink IPO
Here are the steps to invest in Starlink:
- Create an IPO investing app account, such as Freedom Finance.
- Deposit an amount into your account.
- Submit a request to participate in the Starlink IPO when it is available.
Good To Know
It’s best if you deposit money into your account before the Starlink IPO goes live. Sometimes, the date for the IPO is only announced at the very last minute. So you may only have a short time to participate. If you don’t want to miss the opportunity, make sure you have funds at the ready.
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- CNBC. 2021. "Elon Musk Says Starlink Will IPO When Cash Flow Is More Predictable."
- Reuters. 2021. "Spacex’s Starlink Expects It Can Provide Global Coverage Around September 2021."
- Discover Magazine. 2021. "How Do SpaceX’s Starlink Satellites Actually Work?"
- Inverse. 2021. "Spacex Starlink: How Musk Could Pay For His Audacious Mars City in Just 30 Years?"
- CNBC. 2021. "SpaceX Valuation Driven by Elon Musk’s Starship and Starlink Projects."
- Light Reading. 2021. "Elon Musk Eyes Starlink IPO as It Goes Global."