Galaxy-CEO Mike Novogratz Calls SpaceX 'Biggest IPO By A Factor Of Three' But Warns Of 'Palm' Bubble Echo

• Mike Novogratz stated SpaceX's IPO could raise $75 billion, significantly outpacing Saudi Aramco's previous record.
• Novogratz emphasized that the valuation is heavily influenced by artificial intelligence, framing the IPO as a convergence of space exploration and AI.
• He issued a cautionary note, comparing this IPO to the Palm IPO during the dot-com bubble, although he believes the SpaceX situation may be more legitimate.
   

Galaxy Digital (GLXY) CEO Mike Novogratz said SpaceX’s (SPCX) market debut is the biggest initial public offering (IPO) ever, but cautioned the hype around it is like previous market peaks.

Speaking on All Things Market with SkyBridge Capital founder Anthony Scaramucci, Novogratz said SpaceX was the “biggest IPO by a factor of three of all time.” The company was set to raise $75 billion if the greenshoe option was triggered, versus roughly $25 billion for Saudi Aramco (KSA) and other past giants.

He attributed much of the company's valuation to artificial intelligence rather than its space business alone. Novogratz described the offering as one that "brings in space and an A in AI," adding that "a lot of valuation comes from the AI side." He framed the debut as a convergence of two of the market's biggest themes, tied to an ongoing technology shift and one of the great bull markets.

But Novogratz flagged a warning sign. He compared the listing to the Palm IPO, which coincided with the peak of the dot-com bubble, saying, "This is how great markets end." He conceded the SpaceX story "could be more real" than that earlier episode.

A Three-Pool Buyer Structure

Novogratz weighed in on the mechanics of the purchase, crediting Goldman Sachs (GS) and JPMorgan (JPM) for creating demand across three buyer pools. Index funds were on the sidelines, ready to buy as soon as the SEC and S&P changed the rules to let SpaceX into major indexes, a structure that didn’t exist in prior IPOs, he added.

The other segment was large institutions like BlackRock (BLK) and Fidelity (FIS), with hedge funds and a 15% retail allocation making up the balance. “There was over-subscription, and they cut back the allocations,” he stated.

“This is a great day for America” and for venture capital, said Novogratz, a long-time investor in SpaceX who initially put money into the company in 2013 via Antonio Gracias.

Why Novogratz Took A Different Path With Galaxy

GLXY’s price closed at $33 on Friday. On Stocktwits, retail sentiment around GLXY remained in the ‘extremely bullish’ zone, while chatter around it stayed at ‘extremely high’ levels over the past day. 

Read also: CLARITY Act's July 4 Deadline Is 'Logistically Impossible' Amid 16-Day Senate Window, Says Eleanor Terrett

For updates and corrections, email newsroom[at]stocktwits[dot]com