Blockspace: SpaceX’s $250B IPO Raise, KEEL’s $458M Convertible Note, Hut 8’s $4.25 Senior Note, OpenAI’s 10 GW Datacenter

**Colin** (0:05)
What's up y'all, welcome back to Blockspace Live, brought to you by CleanSpark. We have a fat lineup today, Charlie. We're gonna start with SpaceX's IPO being oversubscribed 3X, because apparently, my friend, the market has learned you don't bet against Elon Musk, even if the economics might not make sense. After that, we have Jamie McAvity of Cormint on to talk about their new facility in Texas. And just to get his takes on current Bitcoin mining economics and opportunity, and what we should expect over the next year is hash price craters towards all-time lows once again, and hash rate is following suit. After that, we have notes on Keele and Hut 8 senior secured notes that they just announced the pricing of today.
And then we have a story on Crusoe pulling out of a massive data center in Wyoming.
And then we will end with OpenAI planning a 10-gigawatt $500 billion data center in Ohio. If you thought that we have reached peak hysteria for NIMBY data centerism, you haven't seen anything yet.

**Charlie** (1:17)
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This show is brought to you by CleanSpark, Nasdaq-listed ticker, CLSK. More on them later on the show. Let's kick it off rather. Let's launch it off because we're going to talk about SpaceX calling. I mean, the IPO is this Friday and boy, is it going to be a heater. The news this week from Reuters is that SpaceX has drawn more than $250 billion of investor demand for what stands to be the largest ever IPO dwarfing the $75 billion that the firm is seeking to raise. This means the SpaceX IPO is oversubscribed three to four times the planned offering size. Holy smokes.

**Colin** (2:52)
Holy smokes indeed, dude. For context, the largest IPO in history was Saudi Aramco at $29.4 billion.

**Charlie** (3:00)
Which is basically the entire economy of the leader of the OPEC countries. Then here we have SpaceX.

**Colin** (3:09)
The $75 billion alone would be incredible compared for a new record setting. If it's actually $250 billion, Charlie?
I mean, I don't want to be that guy, but just to be a contrarian, do you need another flashing signal that things are getting too heated?

**Charlie** (3:31)
No. Or you could just be wrong, Colin. So let's dive a little bit into the deal some more. So just to review, the SpaceX plans to sell 555.6 million Class A shares, the meme number 555, at $135 each, raise $75 billion and value the business a little over 1.7, more like $1.8 trillion, and 30% roughly of those shares are allocated to retail investors. You may have seen stories about, I think it's like Morgan Stanley or Fidelity, lowering the threshold for their retail clients to be able to buy in. That's where we get this tweet that I've got pulled up from Luke Cannon, who tweets sardonically, the cashier at Home Depot just asked if I wanted to round up to support the SpaceX IPO.
That's how it is. This is like a Main Street IPO almost, then it is a Wall Street IPO.

**Colin** (4:38)
I would be curious about that though, because when you see that $250 billion, when I look at that, it's like what institutions here are piling in at this point, and which ones have been left out of the private raise?

**Charlie** (4:50)
They've already piled in. That's the thing.
SpaceX has been a private company for 25 plus years. But everybody who wants a piece, who's already one of these qualified institutional investors, has already gotten a piece.

**Colin** (5:03)
But my point is saying that $250 billion is not just retail though. That's a lot of money. There are institutions piling in now. And that is the one thing that I think... I would love to see the actual allocation. How much of that is coming from retail? How much of that is coming from brokerage accounts like through Fidelity where they lowered their minimum to invest in an IPO to 2,000? From 500,000. Pretty insane.
But I think this will give people...
There are two ways to read this, I think. One is to read, this is either going to give people massive confidence in the IPO's immediate success after listing or it's going to get people screaming for the exit because this thing is massively oversubscribed.