SpaceX stock drops below IPO price on Bitcoin drag

SpaceX shares fell below their $135 IPO price on July 15, hitting an intraday low of $132.15 before closing at roughly $135.27. The drop erased a 40% post-debut rally that had previously pushed the stock to a high of $225.64 just four days after its June 12 listing.

The rapid descent is being complicated by an asset rarely found on aerospace balance sheets. SpaceX disclosed holding 18,712 Bitcoin as of March 31, valued then at approximately $1.29 billion. With Bitcoin currently trading near $63,000, that position is now worth roughly $1.18 billion, making SpaceX one of the most significant corporate Bitcoin holders in the world alongside Strategy and Tesla.

For market professionals, this creates a dynamic neither of those peers had to navigate at their public debuts. SpaceX is a listed equity that functions partly as a leveraged Bitcoin proxy from day one. Right now, both the cryptocurrency and the stock are moving in the same direction: down.

The correlation has become a focal point after a dormant SpaceX Bitcoin wallet recently moved for the first time in months. Although it was only a small test transaction, it raised immediate questions on the blockchain about whether a larger transfer is imminent. Any substantial liquidation would hit a balance sheet already nursing a paper loss on the digital asset.

This crypto overhang is colliding with a traditional equity risk, as a lockup restricting 911.5 million shares remains pending. That impending supply threatens to further suppress the stock price as the post-IPO hype fades.

Analysts remain mostly bullish, maintaining an average price target of $242, which implies significant upside from current levels. However, a stock losing 40% of its value in five weeks is not an equity where fundamentals are doing the talking. For investors, the immediate trajectory of SpaceX shares will depend less on aerospace operations and more on how the market digests its volatile digital asset holdings.