... and if you need suckers to pony up $75 billion, it has to come from somewhere.
Hannah Lang writing for Reuters:
SpaceX's much-anticipated $75 billion initial public offering, set to be the largest ever, will likely keep cryptocurrency prices in the doldrums as retail investors attracted to new and risky artificial intelligence stocks scramble to get a slice of the action.
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The company has set aside up to 30%, or $22.5 billion, of shares for retail investors, Reuters and other outlets have reported, in a rare move for a blockbuster IPO that historically have been dominated by institutional investors.
That has helped drive rotation out of risk assets like cryptocurrencies, as retail and other investors free up cash to buy shares in SpaceX - as well as hotly anticipated IPOs from OpenAI and Anthropic that are expected to follow this year, said analysts and crypto executives.
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SpaceX's IPO prospectus shows that the company overall is unprofitable, and its lofty valuation assumes years of rapid growth driven by its plan to become an AI powerhouse, in addition to other futuristic ambitions such as Mars missions and launching AI data centers in space.
That makes it the type of risky and speculative AI bet that appeals to the same cohort of retail investors that drive sentiment in crypto markets, crypto executives said.
"A SpaceX IPO would likely pull some capital out of crypto, at least initially. Both compete for the same pool of risk capital," said Thomas Puech, CEO of crypto trading firm INDIGO, adding that relative to crypto, AI is "the 'sexier' trade at the moment."
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