A historic stock market debut is imminent, with SpaceX's initial public offering expected to take place in June, potentially drawing interest away from crypto assets. The company has filed a confidential S-1 with the SEC, aiming to raise $75 billion at a valuation of $1.75 trillion. If successful, this would be the largest stock market debut in history, surpassing Saudi Aramco's $29 billion record in 2019.
SpaceX is not alone, as OpenAI and Anthropic are also planning to go public, with valuations nearing $1 trillion and $60 billion, respectively. The combined capital raise of over $240 billion from these IPOs could exceed the total venture-backed US IPOs since 2000, according to PitchBook. This massive influx of capital could lead to a rotation out of equities and into these new listings, potentially impacting the crypto market. Crypto assets, including bitcoin and ether, have traded in tandem with tech and AI equities, and the upcoming IPOs could trigger a compression of liquidity in the crypto market.
The historical parallel with Coinbase's IPO in 2021, which marked the peak of the last bitcoin cycle, is a point of concern. The 30% retail allocation in SpaceX's IPO, roughly $22 billion, could also divert attention and capital away from crypto assets. Additionally, SpaceX's material bitcoin position, worth around $600 million, makes its IPO the first public-market debut of a company with a significant disclosed bitcoin holding.
The impact of these IPOs on the crypto market will be closely watched, particularly during the roadshow window in May and June.