SpaceX IPO Set to Give Investors Window Into Crypto Volatility

SpaceX’s blockbuster initial public offering has raised the prospect of a nearly $2 trillion valuation and IPO windfalls. But it also brings heightened scrutiny to its cryptocurrency holdings—and their sometimes wild fluctuations—under US accounting rules.

Elon Musk’s rocket, satellite, and artificial intelligence company holds more than 18,000 Bitcoin, worth nearly $1.3 billion as of March 31, according to a May regulatory filing. That’s more than twice as much as previously estimated and would rank SpaceX’s Bitcoin stockpile in the top 10 among public companies, according to data from Bitcoin Treasuries.

Once its shares begin trading, SpaceX will be required to consistently reveal to the public the value of its digital currency, with changes recorded in net income, under first-ever US crypto accounting rules the Financial Accounting Standards Board published in 2023.

Bitcoin is the biggest of the highly volatile asset class. On June 3, it was hovering below $66,000—well off the $126,000 it was trading near in October.

Depending on the swings in value reflected in earnings, SpaceX could come under shareholder pressure to offload some of its cryptocurrency.

“Is the market comfortable with them continuing to hold that much exposure? Or do they actually experience some pressure to sell some of that exposure?” Brigham Young University associate professor Aaron Jacob said.

Companies may hold cryptocurrency to diversify treasury assets, hedge against inflation, signal leadership in technology, or complement a business strategy that includes accepting digital assets as payments.

The key question for investors will be whether SpaceX’s crypto holdings are core to its operations and strategic vision, said Sean Prince, a partner in accounting and consulting firm Crowe’s national office.

“People don’t complain when Bitcoin’s going up, but when it starts going down, then people will start to question, ‘why are we holding this? And is it a distraction?’” Prince said.

SpaceX is poised to go public as soon as this month. Analysts project it could shatter IPO records, seeking to raise $75 billion in an offering that could give it a market value of almost $1.8 trillion.

After the IPO, SpaceX will be required to submit regular filings to the Securities and Exchange Commission. The SEC recognizes FASB as the designated accounting rulewriter for public companies, meaning businesses use the board’s rulebook to prepare their financial documents.

SpaceX didn’t respond to a request for comment on its Bitcoin investments, which represent a sliver of its more than $102 billion in assets as of March 31, according to the company’s balance sheet.

Capturing Volatility

When SpaceX becomes public, investors and analysts will not only be able to track period-by-period changes in its Bitcoin, they also will be privy to the exact number of units held through purchases or sales, Indiana University professor Vivian Fang said by email.

SpaceX has significantly more Bitcoin than the more than 11,000 coins held by Musk’s electric vehicle maker, Tesla Inc. Still, that pales in comparison to Strategy Inc., a former software maker known as MicroStrategy that became a Bitcoin treasury business.

Strategy disposed of about $2.5 million of Bitcoin, according to a June 1 filing, a break from its maximalist playbook. That’s still a small amount relative to its roughly $60 billion Bitcoin position.

“If you’re not MicroStrategy with the very long-term bullish view, then you’re stuck kind of weighing the pros and cons of short-term volatility with long-term commitment to the future of this asset,” said Jacob, who is also a senior adviser at digital asset compliance firm Taxbit.

Bitcoin price gyrations can be tied to such factors as economic conditions, news coverage, supply and demand, and consumer confidence.

Previous accounting practice dragged down then-MicroStrategy’s earnings, as the coins’ value decreased. Under that approach, gains would be recorded only if companies sold crypto at a profit.

Companies now can capture the highs of their holdings under FASB’s crypto guidance. The rules require businesses to record certain coins at fair value, a measurement technique that aims to reflect current market value.

SpaceX revealed in its SEC paperwork—filed May 20 under Space Exploration Technologies Corp.—that it was an early adopter of the new crypto accounting approach. The company began following the guidance Jan. 1, 2024. The fair value of its Bitcoin declined from $1.7 billion at the end of 2024 to $1.6 billion a year later, according to its filing.

Current crypto accounting guidance has introduced volatility in corporate earnings. Tesla’s adjusted earnings, for example, got a boost in April 2025 from backing out the dip in the value of its crypto. The move bumped up the unofficial earnings measure it touted to Wall Street by about 12%.

“With the adoption of the new mark-to-market standard for Bitcoin, we expect increased volatility in our other income in addition to the FX equivalent,” Tesla Chief Financial Officer Vaibhav Taneja said at the time.

Investor Scrutiny

While companies like SpaceX can now capture their coins’ highs under accounting rules, they will still need to weigh the downswings against possible market backlash.

“It’s a good change,” Jacob said. “But do companies get punished in the market for any volatility, good or bad? That’s going to be interesting to see.”

The space giant also could face questions about its crypto strategy as it begins talking with prospective investors.

Investors may seek to understand whether cryptocurrency is a core or non-core element of the business, especially given that it exposes the company to market risk, Prince said.

“Whether you see divestitures after it goes public, I don’t know,” Prince said. “I think ultimately that’ll be up to the shareholders to determine.”