SpaceX has recently faced a staggering decline in its market valuation, losing over $600 billion in just three trading days, a drop that represents nearly half of Bitcoin’s total market capitalization of approximately $1.3 trillion. The turmoil was sparked by the announcement of the company’s inaugural bond sale aimed at raising at least $20 billion to fund its ambitious artificial intelligence projects, following its acquisition of Elon Musk’s xAI earlier this year.
On Monday, SpaceX’s stock plummeted by 16%, settling at $154.60, which marks the lowest point since its market debut on June 12. Over the three-day period, the stock has experienced a dramatic 23% decline. This downturn is particularly noteworthy as it follows a week where SpaceX’s valuation nearly reached $2.5 trillion, briefly surpassing tech giants like Amazon and Microsoft.
In contrast, Bitcoin’s value remained relatively stable during this period, experiencing a minor decrease of less than 1% while hovering near $63,600, according to CoinDesk data.
The decision to pursue debt financing through bonds—rather than diluting shareholder value via new equity issuance—was a strategic move by SpaceX. However, this initial step into the bond market has sent ripples through investor sentiment, leading to continued selling pressure. The stock’s slide persisted into Tuesday, with a perpetual futures contract tracking SpaceX on Hyperliquid dropping another 15%, bringing its value to approximately $151.
Market experts suggest that the substantial volatility in SpaceX’s stock can be attributed partly to its structural characteristics, particularly its limited float. The small percentage of shares available for trading means that any significant price movement can lead to amplified reactions, as evidenced by the drastic single-session declines triggered by a single announcement.
As the dust settles from these turbulent trading days, investors are left to reassess SpaceX’s future trajectory amid substantial shifts in the market landscape.
