Ark Invest bought roughly $32.5 million worth of SpaceX shares on Monday, stepping in after a sharp sell-off that erased most of the stock’s early gains following its June debut.
Ark Invest adds to SpaceX position after sharp drop
According to its daily trading disclosure, Ark acquired 210,121 shares at a closing price of $154.60, after the stock fell 16.43% in a single session. The purchases were spread across four of its ETFs, bringing the total value of the buy to about $32.48 million.
The move places SpaceX among Ark’s top holdings. It is now the sixth-largest position in the Innovation ETF at 4.46% ($313.7 million), fourth-largest in the Autonomous Technology fund, the largest holding in the Space and Defense fund, and tenth in the Next Generation Internet fund.
Volatility follows blockbuster debut
SpaceX has seen significant price swings since going public. The stock opened at $150, climbed to $225.64 within days, and then reversed sharply. The company debuted with an estimated valuation of $1.77 trillion, making it one of the largest IPOs on record.
Trading activity has also cooled after an initial surge. Volume reached $1.4 billion on the first day and peaked at $1.6 billion on June 16, before falling to $43.3 million by June 21, signaling a drop in short-term trading momentum.
Bond plan adds another layer to market focus
On the same day as Ark’s purchase, SpaceX announced plans for its first bond offering, though it did not disclose the size. Proceeds are expected to be used to refinance debt tied to a bridge loan facility and support general corporate operations.
Separately, reports suggest the company may target at least $20 billion in bond issuance, backed by investment-grade ratings from major agencies. The move could strengthen liquidity while increasing leverage, adding another dimension for traders assessing the company’s financial position.
Strategy reflects long-term conviction
Ark’s latest buy aligns with its pattern of adding to positions during market declines, signaling confidence in SpaceX’s long-term growth despite recent volatility. The sharp price movements following the IPO reflect a typical price discovery phase, as traders adjust valuations for a newly listed company of this scale.
Market participants are also watching upcoming lock-up expirations, which could allow insiders to begin selling shares later this year. An increase in supply at that stage may introduce additional pressure on the stock, depending on broader market conditions.
Want to capitalize on market swings like Ark? Learn essential crypto volatility strategies in our trading strategies guide.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
