The SpaceX IPO Is Creating A Massive Opportunity In Crypto

**Martin** (0:00)
Everyone is just waiting for SpaceX to do IPO and buy some shares. And my concern is that, what's my edge in that trade?

**John Gillen** (0:11)
This show is an early one for me after the Knicks game last night, but it was all good because of the way things ended up. Hello and welcome to The Milk Road Show, the podcast that knows that bear markets are for building, so you are ready to party when the bulls come back. I'm your host, John Gillen. Today is Thursday, June 11th, and today we are back with another episode of the Milk Road Pro Analyst Crypto Research Meeting. Once a week, we huddle up to talk about what's up in crypto. I always learn a lot from these conversations. Unfortunately, Kyle is off today. He's out conquering the world somewhere, so it is just gonna be me and our head crypto researcher, Martin. If that sounds good to you, make sure you like and subscribe. Share this episode with somebody who's gonna enjoy it. We're gonna break down a lot of the alpha that's going on in the space today and just talk about what's keeping us interested in the bear market. Today's episode is brought to you by CAPE, the Privacy First Mobile Carrier and BitGet, Stocks 2 with Real Liquidity and Real Dividends. And without further ado, welcome back to The Milk Road Show. Martin, how are you?

**Martin** (1:05)
Hello, sir. I'm doing fine. How about you?

**John Gillen** (1:09)
I'm okay.
Yeah, it's gonna be an interesting conversation today. I think you're very adamant that this not be an interview. So I thought a good place to start the conversation would be with a discussion around the big news of the week that's really moving all markets, which is this IPO from SpaceX. It's coming in, I think, at a $1.77 trillion market cap, $135 per share, which is a lot, let's say that. We've gotten some questions from our pro community at Milk Road about how this impacts crypto and what you think the short-term, long-term impacts of this is going to be on the markets here for digital assets and for everything. But just any thoughts from you about the SpaceX IPO, what are you looking for, any things you're watching as it relates to the crypto markets here?

**Martin** (1:57)
I was reading a very good piece from Melvin yesterday, and he highlights that the main thing about SpaceX is, SpaceX is pretty much monopoly in terms of transportation into the space and the costs per kilogram are on a downward trajectory, which is something that everyone is now looking at. Because if we are really, at some point, going to build data centers in space, you need to bring a lot of material there. SpaceX is right now pretty much the only player.
I get that people are very excited about this IPO, and the bull case and the future potential is just enormous. But for my perspective, I'm trying to avoid things that are overcrowded. And right now, everyone is just waiting for SpaceX to do IPO and buy some shares. And my concern is that, what's my edge in that trade? It's just, I'm like everyone else, I'll just buy no matter what, and I don't want to be that guy.
So I'm probably going to skip. I know that there is a lot of excitement, and some people are going to jump in and maybe sell the very same day because the stock is going to explode. Maybe, maybe not, I don't know. But I'm probably going to pass, let things settle a little bit and see where SpaceX trades in 6 to 12 months, because then there are some unlocks, then SpaceX will be added to some indices, so it will generate some substantial buy pressure.
So, yeah, probably I'm not as bullish as everyone else. But I don't know, what about you, John? Are you buying in tomorrow?

**John Gillen** (4:00)
It sounds like you're bullish. You just have a little bit of a patient strategy, which I think makes a lot of sense. I think that there's ample reason to think that this will continue to be a highly valued stock and there'll be a ton of demand for it. I think that the way I'm thinking about this is looking at the weakness creating in other assets, right? Because there's been a little bit of a pullback in a lot of markets and it seems like a lot of people are raising capital specifically to allocate to this or to be able to take a position when they want to.
And so I think we've seen weakness in other risk assets, particularly Bitcoin and crypto right now have gotten no attention, no speculation, no euphoria. And to me, that is the interesting opportunity, right? Where you have such high quality assets in the digital asset space, Bitcoin and Ethereum and so forth, that nobody's interested in, nobody wants to accumulate. And so while everybody is piling into these AI stocks, I think it's a great opportunity to look at other things where capital has left, to go speculate on SpaceX, but that the fundamentals haven't changed, that the valuation is still really strong. And then I think that's the market presenting you an opportunity. So that's kind of how I'm thinking about this, is not playing the SpaceX IPO itself, but looking for high-quality things that I want to own that are maybe selling off or seeing a period of weakness because of the SpaceX IPO.