Goldman Sachs leverages SpaceX IPO windfall, arranges $450 million charitable donation in advance

BlockBeats news, October 13 — Goldman Sachs Group used a portion of the revenue it earned from the massive gains its wealthy clients made through SpaceX's record-breaking initial public offering (IPO) to arrange $450 million in charitable donations ahead of schedule.

When Goldman Sachs released its third-quarter earnings report on Tuesday, it separately disclosed this special expense under expense items, noting that the expense reduced diluted earnings per share by approximately $1. More than five years ago, Goldman Sachs helped wealthy clients invest in Elon Musk's SpaceX. Earlier this year, the aerospace company went public at a $1.77 trillion valuation, and Goldman Sachs clients who sold shares reaped massive gains, while Goldman Sachs also took in hundreds of millions of dollars from it.

Goldman Sachs CEO David Solomon hinted at this arrangement in September, saying the bank might use this windfall to make large-scale charitable donations ahead of schedule because doing so is more tax-efficient.