SpaceX Stock Slides As Crypto Traders Hold $600M In Leveraged Bets

SpaceX stock is hitting a rough patch, recently slipping below its initial offering price of $135. After a wild run that saw the company market value soar toward $2.8 trillion, the stock has cooled off significantly. This drop has hit early retail investors hard and wiped out a massive portion of the gains that defined the company's high profile Nasdaq debut just a month ago.

Despite the decline in the underlying stock, the crypto market remains deeply tied to the company performance. Traders are still holding roughly $615 million in open interest across SpaceX linked perpetual futures. Even as daily trading volumes have cratered by over 80 percent from their peak, these crypto positions remain stubbornly active. Because these products often involve high leverage, many traders are still exposed to significant risk if the stock price moves violently in either direction.

The real test is just around the corner. SpaceX is approaching its first quarterly earnings report, which will trigger a major release of insider shares. With over $123 billion worth of stock becoming eligible for sale, the current supply dynamics could change overnight. This potential flood of shares, combined with existing leverage in the crypto markets, creates a volatile environment for anyone holding positions on the company.