SpaceX IPO Drives Capital Rotation From Magnificent 7
SpaceX’s IPO has reportedly triggered capital rotation away from the Magnificent 7 technology stocks. The SpaceX IPO raised $75 billion by selling 555.56 million shares at $135 each, valuing the company at about $1.77 trillion. Shares opened near $150, reached almost $176 and briefly lifted SpaceX’s market capitalisation above $2 trillion. By mid-September, the stock was trading between $150 and $160.
Demand was strong, with the offering more than four times oversubscribed. A greenshoe option could increase total proceeds to $86 billion. Elon Musk retained an estimated 82% to 85% of voting control. SpaceX’s main businesses are rocket launches and Starlink, which generated most of its reported $18.67 billion in 2025 revenue. However, the company posted a net loss of about $4.94 billion, highlighting the high valuation risk.
Hedge funds and retail investors reportedly reduced exposure to the Magnificent 7, including Tesla, as they redirected capital towards the new listing. Tesla may face the most direct pressure because of its overlap with the Musk investment narrative. For crypto traders, the main related development is Smarter Web’s proposed MORE preferred share IPO. The UK company holds 2,747 BTC and plans to raise £15 million to £25 million to support Bitcoin accumulation, acquisitions and working capital. TD Cowen set a £0.73 price target, implying about 90% upside, but the offering must raise at least £10 million to proceed.
Neutral
The direct market impact is concentrated in US equities rather than cryptocurrencies, so the effect on crypto trading is likely neutral. The SpaceX IPO could temporarily draw institutional and retail capital away from other high-growth assets, including technology stocks and possibly crypto, if investors prioritise the new listing. This could create short-term liquidity pressure across speculative markets, particularly if SpaceX’s high valuation prompts broader risk reduction.
The crypto-specific link is Smarter Web’s proposed MORE preferred share IPO. Its 2,747 BTC treasury provides a potential source of demand for Bitcoin if the fundraising succeeds. A successful offering could strengthen the corporate Bitcoin treasury trend and support BTC sentiment over the longer term. However, the proposed fundraising is relatively small compared with global crypto market liquidity, and it remains conditional on raising at least £10 million. TD Cowen’s bullish price target is also an analyst projection, not a guaranteed outcome.
Historically, major technology IPOs and high-profile listings can produce short-lived capital rotation as traders rebalance portfolios, but they do not necessarily establish a lasting trend in Bitcoin. Short-term crypto conditions will likely depend more on Bitcoin’s price momentum, ETF flows, interest-rate expectations and broader risk appetite. Longer term, the news is mildly supportive for Bitcoin treasury adoption, but insufficient to create a clear directional signal. The most appropriate classification is therefore neutral.