Gina Rinehart's decision to back Elon Musk's Space Exploration Technologies Corp (NASDAQ: SPCX) has already delivered a sizeable paper profit.
The Australian mining billionaire reportedly secured more than US$1 billion worth of shares through Hancock Prospecting during the company's initial public offering (IPO).
SpaceX shares were issued at US$135 before beginning trade on the Nasdaq on Friday.
The stock closed its first session at US$160.95 before finishing Monday at US$192.50. That leaves the SpaceX share price 42.5% above its IPO price after only two trading sessions.
Based on the US$1 billion investment, Hancock's stake is now worth around US$1.43 billion. That represents an unrealised gain of approximately US$425 million in just a few days.
So, why did Rinehart make such a large bet?
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Why Rinehart backed SpaceX
Hancock Prospecting described SpaceX as a "rare business led by an exceptional founder and operating in sectors with substantial long-term potential".
SpaceX is best known for its reusable rockets and Starlink satellite internet network. However, the company has also expanded into artificial intelligence (AI) after adding Elon Musk's xAI business.
Hancock Chief Executive Garry Korte said there could eventually be opportunities for the two companies to work together.
SpaceX will require large amounts of critical minerals and other materials as it develops rockets, satellites, AI infrastructure, and possible data centres in orbit.
This could line up with Hancock's growing exposure outside iron ore, including rare earths, lithium, and other critical minerals.
A very expensive company
Even though Rinehart's early profit looks impressive, the higher share price has also pushed SpaceX's market value beyond US$2 trillion.
The company initially raised US$75 billion by selling 555.6 million shares at US$135 each. However, underwriters later exercised an option to buy another 83.3 million shares, increasing the total proceeds to US$85.7 billion.
Demand for the IPO exceeded US$250 billion, which helps explain why the stock has climbed so quickly since listing.
Keep in mind that the current valuation leaves very little room for disappointment.
SpaceX generated US$18.7 billion of revenue in 2025 but remained loss-making as spending increased across rockets, satellites, and AI infrastructure.
Has Rinehart bought another winner?
While Rinehart has already made hundreds of millions of dollars on paper, Hancock has presented the purchase as a long-term investment rather than a quick trade.
The possible link between Hancock's critical minerals portfolio and SpaceX's future material requirements also gives the deal a strategic angle.
Even so, investors buying SpaceX shares at US$192.50 are paying more than 42% above the price Rinehart secured through the IPO.
Her timing has been excellent so far. But after such a strong debut, SpaceX will need to deliver plenty of growth to justify its massive US$2 trillion valuation.
