Traders bet against SpaceX following IPO debut as short interest hits 29% of float

SpaceX raised a record $75 billion in its Nasdaq debut on June 12, briefly crossed the $2 trillion market cap threshold, and promptly became one of the most shorted stocks on the planet. Traders have piled into bearish positions so aggressively that short interest now sits at roughly 29% of the company’s public float.

The numbers behind the bearish pile-on

When SpaceX priced its shares at $135, the initial reaction was euphoria. The stock surged past its offering price, and for a brief, shining moment, Elon Musk’s rocket and satellite company was worth more than $2 trillion.

Short interest climbed from roughly 40 million shares in the days immediately following the IPO to approximately 185 million shares by mid-July 2026. In dollar terms, that translates to about $25 billion worth of bearish bets.

The stock has since edged back toward its $135 offering price, erasing much of the post-IPO pop that early buyers enjoyed. Profit-taking from initial allocation holders and broader market volatility have compounded the selling pressure.

Where crypto enters the orbit

SpaceX holds approximately 18,712 Bitcoin on its balance sheet, valued at roughly $1.3 billion at the time of the IPO. That makes it one of the larger corporate Bitcoin holders, sitting behind MicroStrategy and Tesla but ahead of most publicly traded companies.

Crypto-native traders were already positioning before the IPO even happened. Perpetual contracts tied to SpaceX were trading at around $165 on decentralized platforms ahead of the listing, implying those traders were pricing in roughly a 20% gain from the $135 offering price.

Tokenized fractional shares of SpaceX have actually been available since 2025 through various blockchain platforms, giving decentralized finance participants exposure to the company well before traditional retail investors could buy shares on Nasdaq.

Why shorts are piling in

The bearish thesis isn’t complicated. SpaceX debuted at a valuation that priced in decades of execution across multiple business lines: Starlink’s global satellite internet dominance, the Starship program’s eventual Mars ambitions, and government launch contracts that face increasing competition.

There’s also the classic IPO dynamic at work. Lock-up periods eventually expire, insider selling creates additional supply, and the initial scarcity premium that drives first-day pops tends to evaporate.

The counterargument is that 29% short interest creates enormous squeeze potential. If SpaceX reports strong Starlink subscriber growth or achieves a major Starship milestone, the rush to cover those 185 million shorted shares could send the stock sharply higher.

The $75 billion raise was the largest IPO in history. For crypto investors specifically, the Bitcoin balance sheet adds another variable, as a sustained Bitcoin rally would boost SpaceX’s net asset value, while a crypto downturn would give bears additional ammunition to argue that SpaceX’s valuation is inflated by speculative asset holdings rather than operational fundamentals.

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