SpaceX’s $75bn IPO draws investors away from crypto

Bitcoin, which peaked at $126,223 last October, was trading near $60,000 this week, down more than 50 percent.

SpaceX’s upcoming $75 billion initial public offering is already reshaping investor behavior, with analysts warning that the record‑breaking debut could siphon capital away from cryptocurrencies at a time when digital assets are under pressure.

Elon Musk’s rocket and satellite communications company, which merged with his AI startup xAI earlier this year, is expected to fetch a valuation of around $1.75 trillion when it lists on Nasdaq. The IPO prospectus shows the company remains unprofitable, but its lofty valuation is built on ambitious plans to dominate enterprise AI, launch data centers in space, and pursue Mars missions.

In a rare move for such a blockbuster offering, SpaceX has set aside up to 30 percent of shares — worth $22.5 billion — for retail investors. That decision has triggered a rotation out of risk assets like cryptocurrencies, as retail buyers free up cash to participate in SpaceX and other anticipated AI IPOs from OpenAI and Anthropic later this year.

Bitcoin, which peaked at $126,223 last October, was trading near $60,000 this week, down more than 50 percent. Analysts say the timing could not be worse for crypto markets, which fell 15 percent last week in their steepest drop since the collapse of FTX in 2022. Adding to the pressure, Michael Saylor’s MicroStrategy, the largest corporate holder of bitcoin, disclosed it had sold part of its holdings for the first time in years.

“Crypto is a funding currency for a lot of this,” said Spencer Hallarn of trading firm GSR. “We’ve got to find $75 billion for this IPO, and it’s got to come from somewhere.” Thomas Puech, CEO of INDIGO, added that AI is currently “the sexier trade” compared to crypto, making it more attractive to the same pool of risk‑hungry investors.

Market analysts note that while SpaceX has revolutionized space travel and satellite communications, its IPO is ultimately a speculative bet on Musk’s vision of AI‑driven enterprises. That overlap with crypto’s investor base has left digital assets vulnerable to capital flight.

David Morrison of Trade Nation summed up the mood: “Bitcoin has lost its luster and novelty for many investors. Excitement over the SpaceX IPO isn’t helping either.”