Castelion Secures $1 Billion to Ramp Up Blackbeard Hypersonic Missile Production

Castelion has announced that it has raised $1 billion in Series C financing, which will be used to reach maximum production rate for its Blackbeard hypersonic strike missile and fund two further weapon lines. The company's valuation now stands at $13 billion.

The funding round combines $800 million in equity with $250 million in committed financing for a revolving credit facility. Several prominent investors, including JPMorganChase's Strategic Investment Group, Andreessen Horowitz, and funds managed by Carlyle, co-led the equity portion.

## The Role of Private Capital The Department of Defense has emphasized the importance of private capital in supporting the production of hypersonic missiles. According to the Department, several new-entrant vendors, including Castelion, will reach production scale without direct investment from the government. Instead, the Department will reward private sector capital through a partnership model.

The Department has committed to awarding a two-year multi-year procurement contract for a minimum of 500 Blackbeard missiles annually once Castelion completes testing and validation. The contract also includes options extending up to five years. Additionally, the Department is seeking authorizations and appropriations to buy more than 12,000 missiles over five years.

## Expansion of Blackbeard Production Castelion has announced plans to commit hundreds of millions of dollars to expand its production facilities in New Mexico. The company has already invested more than $250 million in its 1,000-acre campus in Sandoval County. The expansion will support the increased production of Blackbeard missiles.

The company has secured more than $500 million in US military contracts over the past 18 months. Some of the disclosed awards include: | Award | Amount | Date | | --- | --- | --- | | Navy contract | $49.9 million | February 2026 | | F/A-18 Super Hornet integration | $105 million | April 2026 | | Pre-production prototypes | $23.4 million | June 2026 |

## Future Developments Part of the funding round will be used to support the development of a longer-range precision-strike weapon that reuses Blackbeard components and manufacturing methods. The company is also working on an air and missile defense system aimed at providing greater magazine depth at lower cost. These new developments will enter a field that is becoming increasingly crowded, with other companies, such as Lockheed Martin and Ursa Major, also working on similar projects.

The market for hypersonic missiles is expected to continue growing, with several companies competing for contracts and funding. Castelion's announcement is a significant development in this field, and the company's ability to secure funding and expand its production capabilities will be closely watched by industry observers.