The SpaceX initial public offering (IPO) has quickly become one of the most talked-about developments in financial markets, and Bitcoin is not left out of the conversation. As the market prepares for a fresh start, conversations have taken place about what this will mean for Bitcoin and the cryptocurrency market, considering the US company is currently one of the largest corporate holders of BTC globally.
What to Expect from SpaceX IPO
The SpaceX IPO is expected to launch tomorrow, June 12th, and expectations are sky high. The company has already announced that it will issue 555,555,555 shares at a listing price of $135. This would make the Elon Musk-led company a $1 trillion company, valued at $1.75 trillion per share at this price, the Wall Street Journal reported.
If this IPO goes through without a hitch, the SpaceX IPO will officially become the largest IPO in financial market history. While stock prices are still dependent on what the market decides, interest in the IPO suggests retail prices could be high.
Interestingly, SpaceX’s decision to announce its stock price a few days before its IPO is unusual. This is because companies tend to reveal their stock prices a day before the IPO. But SpaceX’s decision to do this only served to fuel speculation about the listing and increase its popularity.
On June 12, the company is expected to officially become a public company and list on the Nasdaq stock index. If all goes as planned, the company expects to raise $75 billion, which would triple the current record of $25 billion set by Saudi Aramco.
What impact could this listing have on Bitcoin and cryptocurrencies?
There was speculation that the slump in the Bitcoin and cryptocurrency markets last week was due to capital circulation due to the SpaceX IPO. In times like these, when there is an ‘opportunity’ to capitalize on new investments, it is common for investors to dump their current holdings and enter new ones.
Additionally, the decline in Bitcoin price coincides with companies announcing share counts and stock prices. Around the same time, the Bitcoin ETF market recorded its largest single-day outflow, surpassing $500 million on June 2.
However, amidst all this speculation, the company is set to release over 18,700 BTC worth approximately $1.3 billion on its balance sheet. At the helm of the company is billionaire Elon Musk, who is very much in favor of Bitcoin and cryptocurrencies. The move will put BTC in the spotlight as another major listed company now holds a major stake in the digital asset besides Strategy (formerly MicroStrategy).
The cryptocurrency market is gearing up for SpaceX IPO trading, with cryptocurrency exchanges Coinbase and Kraken announcing pre-IPO perpetual futures last week. With the likes of Binance already offering cryptocurrency investors direct exposure to the stock market, this will only help bridge the gap between crypto and stock markets, but the impact it will have will likely be minimal as of yet.
Featured image by Dall.E, chart by TradingView.com
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