With SpaceX completing its internal tender offer, the privately held company's implied valuation has reached approximately $800 billion. As a long-term investor, Alphabet (GOOGL.US) is expected to recognize another substantial paper gain from this development.

Reports indicate that SpaceX's internal stock sale was priced at $421 per share, marking a significant increase from previous secondary market transactions. This valuation adjustment is likely to enhance Alphabet's carrying value of its long-term investment in Elon Musk's rocket and satellite company.

Alphabet has been an investor in SpaceX since at least 2015, when it co-led a $1 billion funding round alongside Fidelity Investments, collectively acquiring about a 10% stake. The company declined to comment, citing its policy of not disclosing or discussing specific private holdings.

Earlier this year, a similar valuation adjustment had already benefited Alphabet. Following SpaceX's tender offer at a $350 billion valuation in late 2023, Alphabet reported an $8 billion unrealized gain in April related to private company investments—widely believed to be from SpaceX. This gain contributed to Alphabet's first-quarter earnings surpassing Wall Street expectations.

While Alphabet does not disclose details of specific private holdings in its financial reports, SpaceX's valuation changes have previously been reflected in earnings through "unrealized gains on non-marketable equity securities." With SpaceX's latest tender offer implying a substantially higher valuation, investors will closely monitor Alphabet's next earnings report to assess whether this adjustment will again boost the company's accounting performance.