SpaceX loses $600B in value, fueling Bitcoin rotation narrative

SpaceX has shed roughly $600 billion in market value since its June 16 peak of $225.64, with shares now trading near $155 — 31 percent below the all-time high and just 15 percent above the $135 IPO price. The decline has erased more than a quarter of the company's market capitalization in nine trading sessions.

"The speed of this unwind creates a natural narrative for capital to rotate into hard assets like Bitcoin," said a digital-asset strategist at a crypto research firm. "Investors who took profits on the IPO pop are looking for the next asymmetric bet."

SpaceX's post-IPO float is small relative to its $2 trillion market cap, amplifying volatility. The company reported a net loss of $4.9 billion in 2025 on revenue of $18.7 billion, and its price-to-sales ratio of roughly 108 times makes it one of the most expensive mega-cap stocks in the market. Cathie Wood's ARK Invest bought 210,121 additional shares during the sell-off on June 22, but the broader market has been less forgiving.

If the rotation thesis holds, Bitcoin stands to benefit as the most liquid digital asset among investors exiting SpaceX positions. A rotation of even a fraction of the capital that flowed into SpaceX during its IPO week — the company raised roughly $87 billion in the largest IPO in history — could provide a significant demand catalyst.

The SpaceX sell-off has been unusually concentrated. The stock surged 67 percent from its $135 IPO price to $225.64 in its first two trading days, making it briefly the fourth-largest company by market cap, before reversing sharply. The decline accelerated after the company disclosed a $25 billion debt sale less than two weeks after the IPO, raising concerns about cash burn.

SpaceX burned through $1.94 billion in operating cash in the first quarter alone, according to its IPO filings, as it invested heavily in Starship development and xAI infrastructure. Starlink, the satellite internet unit, generated $3.26 billion in Q1 revenue — 69 percent of total sales — and was the only profitable segment, posting $1.19 billion in operating profit. The AI unit posted a $2.5 billion operating loss.

For Bitcoin, the potential inflow comes at a time when the asset has been consolidating. The comparison to prior cycles — where profits from high-flying tech names rotated into crypto — has not been lost on traders. SpaceX's inclusion in the Nasdaq-100, expected later this year, could create mechanical buying demand for the stock, but the near-term overhang from lock-up expirations and the debt sale may keep pressure on shares.

This article is for informational purposes only and does not constitute investment advice.