Everyone's buzzing about the upcoming SpaceX initial public offering (IPO), which is likely to become the biggest IPO in history. The focus right now for many investors is finding ways to get exposure to SpaceX pre-IPO, as well as finding other space stocks that might go along for the ride in a broader space bull market.
But don't forget about the potential impact of a SpaceX IPO on the crypto market. In fact, there's one cryptocurrency that could go absolutely ballistic after the SpaceX IPO this year.
SpaceX's Bitcoin holdings
SpaceX holds over $600 million in Bitcoin (BTC +0.14%) on its balance sheet, and that's enough to make SpaceX the fourth-largest corporate holder of Bitcoin in the world. The 8,285 BTC that the company holds is more than, for example, the 7,000 BTC held by American Bitcoin Corp.
Once investors and analysts see how much Bitcoin SpaceX is holding on its balance sheet, it might encourage other tech companies to add Bitcoin to their balance sheets as a treasury asset. That's especially the case given that Tesla -- another Elon Musk company -- is also a noteworthy holder of Bitcoin.
Image source: Getty Images.
For now, arguably the best template for a tech company hoarding Bitcoin is Block, Inc. (XYZ +8.61%), the fintech company formerly known as Square. The company holds 8,883 BTC on its balance sheet. But Block, even though it's helmed by tech visionary Jack Dorsey, is not big enough to really move the needle.
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Bitcoin needs a "Magnificent Seven" company -- or a company with the same size and heft as a Magnificent Seven company -- to embrace crypto as a treasury asset. And that's exactly the role that SpaceX could fill, if it is indeed valued at $1.75 trillion, as many now expect. If the SpaceX IPO leads to sustained buying of crypto by companies across the tech sector, it could send Bitcoin soaring.
Elon Musk and Dogecoin
But let's think out of the box as well. It's easy to see how the meme coin Dogecoin (DOGE +0.02%) could also get a boost. In the past, Musk has been a high-profile DOGE supporter, and any social media mentions of Dogecoin going to outer space with SpaceX might light a rocket fire under the meme coin.
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That might sound like a flight of fancy, except that it has already happened. In the past, Musk has suggested that Dogecoin might become the first interplanetary currency. And he has suggested that future moon missions might be paid for entirely with Dogecoin.
SpaceX "scam coins"
Finally, there's the dark underbelly of the crypto world: scam coins. Inevitably, crypto tokens are going to launch, claiming to be backed by SpaceX. Already, for example, a coin called SpaceXCoin has launched and attained a $100,000 market cap.
Unfortunately, that means at least $100,000 of wealth is going to be wiped out, because these coins tend to be nothing more than pump-and-dump schemes. Right now, there is no official SpaceX crypto token, so buyer beware.
Bitcoin to the moon?
For now, the only crypto worth keeping an eye on is Bitcoin. Once people realize how much Bitcoin SpaceX holds, it might encourage other companies to add Bitcoin to their balance sheets.
As a result, I'm fully expecting Bitcoin to blast higher to stratospheric new levels, and it's going to do so thanks to the rocket fuel supplied by SpaceX.
