The SPCX contract on Hyperliquid, a 5x leveraged perpetual contract tracking SpaceX's pre-IPO, has declined by 27% over the past three weeks, now trading at approximately $157. Despite this drop from its mid-May launch price of around $216, SPCX remains above its initial public offering (IPO) price of $135. The implied first-day premium has narrowed significantly from about 60% to 16%.
SpaceX's fixed pricing strategy for the IPO meant investors had to accept the set price or opt out. The SPCX contract, a cash-settled derivative, does not provide holders with shares or subscription rights. SpaceX raised $75 billion, with investor demand surpassing $250 billion, leading to significant oversubscription. The decline in SPCX may be attributed to broader market pressures and investors liquidating positions to participate in the oversubscribed offering.
SPCX Contract on Hyperliquid Drops 27% but Stays Above IPO Price
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