Will The SpaceX IPO Have A Significant Impact On The Bitcoin And Crypto Market?
The SpaceX IPO (Initial Public Offering) has quickly become one of the most talked-about developments in the financial markets, and Bitcoin is not left out of the conversation. As the market gets ready to usher in what is expected to be a new beginning, the conversation has revolved around what this would mean for Bitcoin and the crypto market, given that the American company is currently one of the largest corporate holders of BTC worldwide.
What To Expect With The SpaceX IPO
The SpaceX IPO is expected to go live tomorrow, June 12, and the anticipation has been through the roof. The company already announced that it would be issuing 555,555,555 shares at a listing price of $135. This would make the Elon Musk-led company a trillion-dollar company valued at $1.75 trillion at this price per share, the Wall Street Journal reported.
If this IPO goes off without a hitch, then the SpaceX IPO would officially become the largest IPO in the history of the financial markets. While the price of the shares is still subject to what the market decides, the interest in the IPO suggests that it might retail high.
Interestingly, the decision by SpaceX to announce its share price days ahead of the listing is out of the ordinary. This is because companies tend to reveal share prices a day before the IPO. However, SpaceX’s decision to do this has only worked to fuel speculation around the listing and increase its popularity.
On June 12, the company is expected to officially become a publicly traded company, going live on the Nasdaq stock index. If all goes according to plan, the company expects to raise $75 billion, which would be triple the current record of $25 billion set by Saudi Aramco.
How Could This Listing Affect Bitcoin And Crypto?
There has been speculation that the poor performance of Bitcoin and the crypto market over the past week has been due to capital rotation triggered by the SpaceX IPO. During times like these, when there is an ‘opportunity’ to take advantage of a new investment, it is not out of the ordinary for investors to dump current holdings to go into the new asset.
Also, the decline in the Bitcoin price coincides with the company announcing the number of shares and the share price. Around the same time, the Bitcoin ETF market saw its single largest daily outflow, which crossed $500 million on June 2.
Amid all of these speculations, though, the company is about to go public with over 18,700 BTC on its balance sheet, worth around $1.3 billion. At the helm of the company is also billionaire Elon Musk, who has been very pro-Bitcoin and crypto. This move would put BTC in the spotlight as another major publicly-traded company would hold a major stake in the digital asset besides Strategy (formerly MicroStrategy).
The crypto market is also preparing to trade in the SpaceX IPO, with crypto exchanges Coinbase and Kraken announcing pre-IPO perpetual futures last week. With the likes of Binance already offering crypto investors direct exposure to the stock market, this will only help to further bridge the gap between crypto and the stock market, but the implications of this can only be left to play out.
Featured image from Dall.E, chart from TradingView.com
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