SpaceX's record $250 billion IPO demand has crypto traders worried the offering is siphoning liquidity from Bitcoin (BTC) and other digital assets ahead of this week's debut.
Key Points:
- SpaceX IPO demand tops $250 billion, nearly four times its $75 billion target.
- Analysts question whether the offering is draining capital from Bitcoin and risk assets.
- Crypto markets have shed more than $180 billion in the past week.
SpaceX IPO Demand Tops $250B
Demand for SpaceX's public debut has climbed past $250 billion, nearly four times the roughly $75 billion the rocket maker aims to raise, Reuters reported, in what would rank as Wall Street's largest offering. The order book is running three-and-a-half to four times oversubscribed, with long-only funds placing the largest tickets during the roadshow.
The Elon Musk-led company plans to price shares Thursday and start trading around Jun. 12 on Nasdaq under the ticker SPCX, in a listing set to top Saudi Aramco's record. Stock is offered at $135 each, with bankers eyeing demand from both institutions and a rare slug of retail buyers. That pegs the company near $1.8 trillion, a valuation built on Starlink's growth, launch dominance and a push into space-based AI infrastructure.
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Arthur Hayes Flags Bitcoin Liquidity Risk
Reports say retail traders are dumping Bitcoin to free up cash for shares, helped by an unusual 30% retail allocation through major brokerages. The irony is sharp, since SpaceX itself holds about $1.29 billion in Bitcoin on its own corporate balance sheet, even as its incoming shareholders sell.
The concern is hard to ignore.
Arthur Hayes, the BitMEX co-founder, warned this week that mega offerings from SpaceX, OpenAI and Anthropic could drain serious capital from risk assets, with each deal demanding fresh investor dollars. He said he trimmed several holdings while keeping Bitcoin and Ether (ETH) at the core, and flagged a September lockup that could swell SpaceX's float fivefold. Still, some traders read the recent selloff as routine volatility, not a wholesale flight into a single stock.
Bitcoin Faces A Liquidity Test
A strong debut could cut both ways, since heavy IPO buying may pressure Bitcoin short term while a hot aftermarket could lift broader risk appetite. Analysts are split, with some warning the $1.8 trillion price tag looks stretched and others betting a blockbuster open will spill optimism into crypto.
Crypto markets have already shed more than $180 billion over the past week, a stretch that included the Nasdaq's worst single day in more than a year. Bitcoin now sits roughly 37% below its January peak, having slipped again as that equity rout deepened. That slide has left traders jittery well before the opening bell rings on SpaceX.
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