Analysis: SpaceX IPO Could Raise Bitcoin Exposure in Nasdaq 100
Summary
- Cointelegraph reported that SpaceX disclosed it holds 18,712 Bitcoin (about $1.45 billion), raising the possibility of greater Bitcoin exposure among large Nasdaq technology stocks.
- With SpaceX valued at $1.75 trillion to $2 trillion, its inclusion in the Nasdaq 100 after listing would raise the number of large tech companies holding Bitcoin to two, including Tesla.
- Experts said a SpaceX IPO and possible inclusion in the Nasdaq 100 could trigger selling to fund purchases of the stock, creating short-term pressure on technology stocks and the Bitcoin market and producing a major liquidity drain.
Forecast Trend Report by Period
A SpaceX listing, which could become the largest initial public offering on record, may increase Bitcoin exposure among large-cap Nasdaq technology stocks, Cointelegraph reported on May 22.
SpaceX recently disclosed in an S-1 filing that it holds 18,712 Bitcoin, worth about $1.45 billion at current prices.
The company is valued at $1.75 trillion to $2 trillion, raising the prospect of an early addition to the Nasdaq 100 after listing.
Among large technology companies, Tesla currently holds 11,509 Bitcoin. If SpaceX also joins the Nasdaq 100, the number of large tech companies in the index holding Bitcoin would rise to two.
Phong Le, chief executive officer of Strategy, said the Magnificent Seven would become the Magnificent Eight. In that scenario, 25% of the Magnificent Eight would hold Bitcoin on their balance sheets.
Some analysts say a SpaceX IPO could weigh on technology stocks and the Bitcoin market in the short term.
Analyst Nick Pakrin said inclusion in the Nasdaq 100 could prompt investors to sell other holdings to buy SpaceX shares, creating a major liquidity drain.
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