Key Takeaways:
- SPCX perpetual fell 27% from its May highs to around $157
- Implied first-day premium narrowed to 16% from 60% in May
- SpaceX's $135 fixed IPO price still holds despite the derivative decline
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SpaceX pre-IPO token on Hyperliquid falls 27% as crypto weighs
SpaceX's most actively traded pre-IPO market, a 5x-leveraged perpetual contract on Hyperliquid, has fallen 27% over three weeks as broader crypto market pressure and cash-raising ahead of the record $75 billion offering weighed on the derivative.
"The SPCX perp is one of the few places where a SpaceX-linked price is actually moving before the stock opens, but it doesn't give holders any claim on the shares," said Lise Buyer, founder of IPO consultancy Class V Group. "It's a cash-settled bet on where the equity should trade."
The contract, tickered SPCX, traded near $157 on Wednesday, down from its mid-May launch price of around $216 after briefly touching $230. Despite the slide, it still trades above SpaceX's fixed $135 IPO price, implying an expected first-day premium of roughly 16%, down from about 60% in May. The company set the offer price at $135 with no price range, a take-it-or-leave-it approach that leaves the Hyperliquid perp as one of the few venues for price discovery before Friday's debut.
SpaceX has drawn more than $250 billion in investor interest for the $75 billion raise, making the deal several times oversubscribed, Reuters reported. The company plans to allocate roughly 30% of shares to retail investors through platforms including Charles Schwab, Fidelity, Robinhood, SoFi and Morgan Stanley's E-Trade. SpaceX stopped taking orders Wednesday, a day early, to allow underwriters more time to map out allocations for what is expected to be the largest IPO in history.
The SPCX decline may partly reflect broader crypto market weakness, with bitcoin remaining well below its January high. Some investors may also be raising cash to fund SpaceX allocations, adding selling pressure to the same risk market where SPCX trades. The contract's 27% drop from its May peak signals fading speculative appetite for tokenized pre-IPO exposure, though the implied 16% premium to the $135 offer suggests traders still expect a first-day pop.
This article is for informational purposes only and does not constitute investment advice.
[1] SpaceX's pre-IPO market on Hyperliquid has fallen 27% in three weeks[2] SpaceX IPO explained: The price is set, but retail allocation still up in the air[3] These ETFs surged thanks to early SpaceX stakes. What happens to them after the IPO?[4] How to buy SpaceX shares as its blockbuster IPO readies for liftoff
