SpaceX did not sell any bitcoin during the second quarter, but its shares fell ahead of Wednesday’s market opening as investors focused on the company’s significant capital spending plans, potential free cash flow strain, and a major insider lockup expiration.

The company’s stock declined 11% in premarket trading Wednesday, despite reporting stronger-than-expected initial earnings. Investors appeared more concerned about SpaceX’s aggressive spending strategy and a large block of insider shares becoming eligible for sale on Thursday.

SpaceX reported quarterly revenue of $7.8 billion, up 92% from a year earlier and above Wall Street expectations. Adjusted EBITDA jumped nearly threefold to $3.5 billion, while the company narrowed its net loss to $541 million. At the same time, quarterly spending reached $18.4 billion as SpaceX accelerated investments in Starlink, Starship, and artificial intelligence infrastructure.

The company continued holding all 18,712 bitcoin on its balance sheet throughout the quarter. The holdings were worth approximately $1.1 billion at the end of June, highlighting the impact of bitcoin volatility on SpaceX’s financial results following the adoption of fair-value accounting standards.

The company’s bitcoin position declined in value by roughly $195 million during the quarter, adding another layer of volatility to its earnings.

JPMorgan raised its SpaceX price target to $240 from $225 but warned that the company’s expanding investment plans could weigh on future cash generation. The bank expects SpaceX’s capital expenditures to reach nearly $200 billion in both 2027 and 2028, increasing pressure on free cash flow.

“We now anticipate capital spending of nearly $200 billion in both 2027 and 2028, creating additional pressure on free cash flow in 2027, a trend also seen among large-scale technology infrastructure companies,” JPMorgan analysts said.

The bank also highlighted Thursday’s lockup expiration, which could unlock 911.5 million shares for potential trading and increase the public float by about 143%. However, JPMorgan noted that much of the impact may already be reflected in the valuation, as investors have been aware of the upcoming event for several months.

Raymond James maintained its $800 price target for SpaceX, citing the company’s solid operational performance and long-term growth potential.

SpaceX shares were trading at $111.80.