The value of Neuralink, the brain implant company founded by Elon Musk, has skyrocketed following its first human trial, leading some employees to reportedly gear up for a possible stock sale.
What Happened: Neuralink might initiate a tender offer as soon as next month to repurchase shares from staff looking to sell, reported Reuters, citing two people briefed on the matter.
The company’s shares are not publicly traded, and selling them without Neuralink’s approval involves intricate procedures on specialized private market exchanges.
Neuralink’s valuation has reportedly climbed to as much as $8 billion, over twice its value last year, based on secondary market trades.
The brain implant company’s inaugural human trial was deemed a success, and Neuralink is gearing up for additional trials in Britain and Canada.
Musk has traditionally created a scarcity of shares in his startups, including SpaceX and xAI, making them highly coveted, according to the report.
This scarcity is evident in recent trades, with buyers on private exchanges paying a premium of between 84% and 137% to Neuralink’s valuation in its last private fundraising round in November, the report noted.
Neuralink did not immediately respond to Benzinga’s request for comments.
Why It Matters: This surge in Neuralink’s valuation comes amidst increasing competition in the brain-computer interface market, with rivals like Paradromics gearing up for human trials of their own brain implants.
In May, Noland Arbaugh, the first Neuralink patient, reached the 100-day milestone since having the chip implanted in his brain. “I would like to find some way to provide for myself long-term, build a house for me and my family if I can, and not be a burden on those around me any longer,” Arbaugh stated at the time.
Earlier this month, during a video update, Musk said that Neuralink aims to increase the number of brain implant patients to high single digits by the end of the year. He has also spoken about his ambitious goal of achieving 1,000 Neuralink chip implantations by 2026.
Photo courtesy: Shutterstock
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
