BlackRock ordered $5B in SpaceX shares as IPO demand hits $250B
▼ Summary
– BlackRock ordered at least $5 billion in SpaceX shares ahead of Friday’s IPO, which is priced at $135 per share.
– Total investor demand reached $250 billion, nearly four times oversubscribed, with retail investors requesting over $70 billion.
– Senator Elizabeth Warren requested an SEC delay, citing governance concerns over Elon Musk’s 85% shareholder voting control.
– Morningstar valued SpaceX at $63 per share, while analysts criticized the $28.5 trillion total addressable market estimate as unrealistic.
– SpaceX reported a net loss of $4.28 billion through its latest quarter, with only Starlink profitable among its segments.
BlackRock has placed an order for at least $5 billion in SpaceX shares ahead of the company’s highly anticipated public debut on Friday, according to the Wall Street Journal. That single request nearly matches the entire $5.5 billion raised by Cerebras in the largest IPO of 2026 so far. SpaceX has informed banks it will not adjust its $135 per share price.
Total investor demand has surged to $250 billion, making the offering roughly four times oversubscribed, Reuters reports. The company plans to sell approximately 555.6 million shares, aiming to raise $75 billion at a valuation near $1.77 trillion. Retail investors alone have requested over $70 billion worth of shares, with up to 30% of the IPO potentially allocated to public buyers.
Allocated shares will be accessible through Charles Schwab, Fidelity, Robinhood, SoFi, and ETrade. Fidelity has slashed its minimum account balance for IPO access from $100,000 to $2,000. Schwab still requires $100,000, while Robinhood, SoFi, and ETrade have no stated minimum.
Not everyone shares the enthusiasm. Senator Elizabeth Warren sent a 12-page letter to SEC Commissioner Paul Atkins requesting a delay. She argued the IPO’s sheer size “would justify careful SEC review” and raised concerns about SpaceX’s governance structure. Musk controls 85% of shareholder voting power through supervoting shares, mandatory arbitration, and Texas corporate law. Warren described this as “unprecedented power” over investors who would have “significantly fewer rights than those traditionally offered.”
Market analysts have also questioned the valuation. Morningstar projected SpaceX should trade at $63 per share, roughly half the asking price. “Big Short” investor Michael Burry said there was “nothing” in the filing to suggest the company is worth $1 trillion, “let alone $2 trillion.” SpaceX valued its total addressable market at $28.5 trillion, a figure analysts called “nonsensical” and “smoke-and-mirrors accounting.”
The financials paint a mixed picture. SpaceX disclosed a net loss of $4.28 billion through its latest quarter, following a loss of $4.94 billion in 2025. Starlink, which generated $4.69 billion in quarterly revenue, remains the only profitable segment. The AI arm lost $2.5 billion. Capital expenditure hit $10.1 billion in the quarter, with $7.7 billion directed toward AI. SpaceX spent $12.7 billion on AI last year, compared to $3.8 billion on space.
If shares trade at $135, Musk’s 42% stake would be worth approximately $688 billion, making him the world’s first trillionaire when combined with his other holdings. SpaceX’s S-1 filing also revealed billionaire-making stakes for president Gwynne Shotwell ($1.6 billion), CFO Bret Johnson ($1.2 billion), and board members including Valor Equity’s Antonio Gracias, whose $4.8 billion net worth could surge by $68 billion.
The IPO follows a series of valuation adjustments and last-minute deals. SpaceX signed a $920 million monthly compute deal with Google and a $1.25 billion monthly deal with Anthropic in the weeks before the offering. Warren’s concern is that index funds will be forced to buy SpaceX stock, exposing millions of passive investors to “significant risks with no choice in the matter.”
SpaceX will disclose its final IPO price on Thursday. Trading begins Friday morning on the Nasdaq under the ticker SPCX.
(Source: The Next Web)
