SpaceX IPO nearly four times oversubscribed; crypto, tech fall

SpaceX’s initial public offering attracted roughly $250 billion in investor orders against a planned $75 billion sale, implying a valuation near $1.8 trillion. Pricing was slated for Thursday with trading expected to begin Friday.

Bankers and investors reported sizable orders from long-only funds and other large institutions, producing the near fourfold oversubscription. Sources involved in the bookbuilding process said final figures and allocations could change before pricing as some institutions submit orders late.

The surge of demand came as U.S. technology shares pulled back and crypto markets lost more than $180 billion over the past week. Market participants reported that some portfolio managers sold risk assets to free up cash for SpaceX allocations.

An analyst at Bitrue Research Institute, Andri Fauzan Adziima, described the pattern as “the classic pre-mega-IPO liquidity squeeze,” calling the price moves an “IPO tax” that affects retail-focused crypto most. He projected a trading price around $135 on Friday would correspond to the $1.8 trillion valuation.

SpaceX has pointed to Starlink, its satellite internet unit, as a major revenue and profit driver and has highlighted potential artificial intelligence-related opportunities it values at $23 trillion. Investors cited those factors as supporting demand for the offering.

Cryptocurrency exchanges introduced pre-IPO perpetual futures tied to a SpaceX ticker this month, offering traders a way to take positions before the company lists. One major exchange recorded about $2.1 billion in cumulative trading volume on its pre-IPO perpetuals in 18 days, with participation from traders in more than 130 countries.

A decentralized platform handling synthetic SpaceX derivatives logged roughly $70 million in volume over a 24-hour period and open interest above $115 million. Its contract traded near $157, implying a valuation around $1.97 trillion at that level.

Bankers working on the offering described large, concentrated orders from institutional investors. Deal participants cautioned that allocations and the final order book will be confirmed at pricing and could change up to that point.

The scale of orders and concurrent derivatives activity highlighted the level of investor interest in SpaceX and the potential for a single large equity offering to affect liquidity and short-term price moves across related markets.