SpaceX IPO Shatters Records: Is Crypto About to Feel the Pressure?
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Yep, that SpaceX IPO is huuge. They set a fixed price for the SpaceX IPO. Usually with IPOs, they set a range between this price, this price. They’re still figuring out demand, but they set a fixed price of $135 per share. this five hundred and fifty-five million shares.
A 75 billion dollar offering size. This is the this is the biggest in history. Biggest in history, it would value SpaceX at one point seven five trillion. it would actually make SpaceX the seventh biggest company in the United States, actually bigger than.
Tesla. Tesla has a market cap of $1.6 trillion expected to go public on June 12th. The symbols for SpaceX. SPCX. Hmm. Okay. I’m going to go through, okay? And I haven’t fully gone through the entire prospectus, but this is the most important part.
Of any IPO, any deal. Use of proceeds. How is the money being used? Over the past 10, 15 years, maybe a little bit more. we’ve seen many companies go public when the basic thing is the private equity venture capital companies just laddered these things up for years and years and years and years and years.
And when they went to the public marketplace, basically was there just to get out earlier investors in the company. I avoid those deals like the plague. I do. Some of them over the long haul can work out. But what is going to happen is you’re gonna have the price drop. Tesla is a good example of this. Actually, not Tesla, excuse me. Uber is a good example.
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Of this. I remember having this conversation with people. for you know, Uber, you know, didn’t make money for a very, very, very long period of time. And you’re gonna take a look at that stock price and the history of it there. And again, when it goes public, what have you excitement? And then again, people are getting out. You gotta get out those venture capital companies. In this case, okay, yeah, will you might see some people selling?
Yes, but the use of of proceeds from this is going towards SpaceX. It’s going to fund its growth strategy. First and foremost, okay, it’s going to expand its AI compute infrastructure. This is a major priority. part of the XAI merger integration, it’s they’re gonna be spending money on data centers, GPU clusters,
Colossus, other AI capabilities. Again, where are they putting these things? How are they doing it? Again, Musk, I I got a sinking suspicion,’s got something up his sleeve in regards to putting these things in space. I don’t know if he’s gonna be able to do that anytime soon because we know that everybody’s spelling a spending a boatload of money on the AI build-out, but some of the reality is right now, it’s difficult to get these projects.
off the ground. Myriad of reasons. Getting a lot of NIMBY right now. Not in my backyard when it comes to AI data centers. And I get that. I do. Other use enhancements to launch infrastructure and launch vehicles, accelerating the starship development, testing production, production, and achieving high flight rates for Mars missions and other deep space goals.
All this stuff I would file under Nito. Okay. Freaking cool man. Anybody who’s watched SpaceX launch, the everything that they do, the catching of the rot, all the stuff it it’s pretty phenomenal. It’s really fantastic stuff.
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How do you make money? And that that’s again, earnings matter. Earnings matter. People are gonna say, okay, we’re doing this. This is great. This is cool. Okay, how does this help the bottom line? This next part, I I think could be enormously profitable. Increasing the scale and capacity of satellite constellations.
Expanding Starlink, broadband, and mobile to grow subscriber numbers, improve coverage, and increase revenue. That’s key. That that to me, and I’ve said this for some time. How many people out there actually like their provider? I have ungodly amounts of.
phones and whatnot on my
our our service, our our sell service plan. And without fail, every single time I have to go into the it’s I mean, I use Verizon. I go in there, congratulations. we could be saving you money. Well, why hadn’t you done this? I I gotta like hire somebody to manage my bill and and again all sorts of problems and issues. And I gotta get somebody on the phone because I’m gonna be in Europe and a Europe plan only works month by month. And again I’m like
Why can’t you make this better? I’ve used Starlink’s internet on a remote island. And it’s well, not say remote, on a you know, middle of the Mediterranean. It it works. It’s pretty neat. again, they are gonna have to up the speed to some degree, but it can be hard to compete with that. Really is. You actually have service anywhere on
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the planet. and again, the last thing general corporate purposes, working capital operations, other needs. Again, they are heavily investing in capital intensive areas. Again, good use of proceeds. Again, I haven’t fully gone through the IPO, mapped out what I think is gonna happen. let me and I I don’t have any shares of of the initial
public offering. I think I’ve explained this here before. we at Markowski Investments, we’re not buddies with the big firms. They hate us, quite frankly. And well, it’s going back to our days of just selling IPOs on the first day when they pop to ridiculous valuations. What do you want? You want me to hold this thing? Okay. The owner of the company wants to take it public at 50. It’s at 75 in the afternoon. And I’m not going to say, hey, all right, let’s take the money and run.
I’d be stupid not to do that. Why wouldn’t I? The owner of the company thought his company was valued at this. Okay. And you’re telling me it’s worth that something’s amiss here. And I again I understand how the game is played. But anyway, neither here nor there. Probably what we’ll end up doing with this, like anything else, is watch. Amazon, for example. Let’s go back to the 1990s. again, Amazon was at a
Different competitive landscape at the time. I don’t know if it’s a you know a great comparison, but it’s a comparison. you got obviously what just happened with Bezos’ situation with the fire and what happened there. And we don’t like to see anything like that. This is kind of pretty much the only game in town, but I didn’t know Amazon was gonna be a winner. Who knew? It sold books online.
Everybody was selling. I’m gonna sell CDs online. I’m gonna sell toys online. I’m gonna sell pet food online. Everybody’s selling something online in the 1990s. Bezos figured it out. Bezos figured it out. You could, you know, take a look, go back then and look at the volatility in that stock in the 1990s. we got in, just not at the beginning. Again, didn’t sit well in my stomach at that point in time. Done well. Done real well.
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But anyway, I’m gonna kind of watch and see as this one what’s gonna transpire with this first. there’s gonna be another side thing I want to talk about when it comes to this, quite honestly. I don’t think anybody’s talking about this. could these and I’m not just talking about SpaceX, talking about you got anthropic, you’ve got these other AI companies that are going public. Could that
Basically be a nail in crypto.
Could. Could massive offerings that are out there and there’s only so much money to go around. Is what it is. There’s only there’s only so much money to be putting in these things. And we’re watching, you know, crypto is continuing to slide. you’re gonna see people out there say, Hey, this is my speculative money in crypto. Maybe I’d rather speculate on rocket chips.
And AI rather than made up money.
I think there’s some of that could be in the cards. I’m just saying, only so much money to go around. You get a lot of speculative players out there saying, hey, you know what? I gotta make a choice here. do I want the made-up money or do I want rocket ships? And I think you’re gonna see many of them decide on the rocket ships. Just saying. Watchdog on wallstreet.com.
