Musk’s Long-Time Backer Gives SpaceX Stock to Investors Instead of Selling Shares

Valor Equity Partners, the venture capital firm founded by longtime Elon Musk backer Antonio Gracias, has transferred some of its SpaceX stock holdings directly to investors rather than selling the shares on the open market.

According to an SEC filing, Valor distributed 8.5% of its SpaceX shares to limited partners. The transfer is estimated to be worth about $8.5 billion, according to reports citing Bloomberg.

Valor keeps most of its SpaceX stake

Valor invested in SpaceX over several years and held more than 500 million shares before the transfer. The firm will continue to own more than 460 million shares after distributing a portion of its holdings to investors.

By transferring shares instead of selling them, Valor avoids placing a large number of shares on the open market. The move may also provide tax advantages for limited partners while reducing potential pressure from a major stock sale.

Antonio Gracias, who serves on SpaceX’s board, has been a longtime supporter of Elon Musk’s companies through Valor Equity Partners, which has invested in Spac