Galaxy Digital CEO Mike Novogratz stated SpaceX's market debut is the biggest initial public offering ever, potentially raising $75 billion if the greenshoe option is triggered, compared to roughly $25 billion for Saudi Aramco and other past giants. Speaking on All Things Market with SkyBridge Capital founder Anthony Scaramucci, Novogratz attributed much of the company's valuation to artificial intelligence rather than its space business alone, describing the offering as one that "brings in space and an A in AI" with "a lot of valuation comes from the AI side." He issued a cautionary comparison to the Palm IPO, which coincided with the peak of the dot-com bubble, saying "This is how great markets end," though he conceded the SpaceX story "could be more real" than that earlier episode. Novogratz framed the debut as a convergence of two of the market's biggest themes, tied to an ongoing technology shift and one of the great bull markets.
SpaceX IPO Buyer Structure Across Three Pools
Novogratz weighed in on the mechanics of the purchase, crediting Goldman Sachs and JPMorgan for creating demand across three buyer pools. Index funds were on the sidelines, ready to buy as soon as the SEC and S&P changed the rules to let SpaceX into major indexes, a structure that didn't exist in prior IPOs, he added. The other segment was large institutions like BlackRock and Fidelity, with hedge funds and a 15% retail allocation making up the balance. "There was over-subscription, and they cut back the allocations," he stated.
According to SpaceX's final IPO prospectus filed with the SEC, the underwriting discounts and commissions total $500 million, or $0.90 per share, representing about 0.7% of the $75 billion raised. Goldman Sachs and Morgan Stanley led the offering as joint book-running managers, alongside BofA Securities, Citigroup, and J.P. Morgan. "This is a great day for America" and for venture capital, said Novogratz, a long-time investor in SpaceX who initially put money into the company in 2013 via Antonio Gracias.
Galaxy Digital's One-Share-One-Vote Governance Choice
Novogratz drew a contrast with his own approach to taking Galaxy Digital public, noting that he rejected the kind of super-voting share structure that lets founders like Brian Armstrong keep control of Coinbase regardless of their economic stake. He said he opted for a one-share-one-vote structure for Galaxy because it felt "more fair and more democratic," adding that he did so "kind of ideologically," even as he acknowledged the dual-class setups at companies like Coinbase have "worked in a lot of cases." Galaxy Digital's price closed at $33 on Friday.
FAQ
What did Mike Novogratz say about the size of SpaceX's IPO?
Mike Novogratz stated SpaceX's IPO is the "biggest IPO by a factor of three of all time," potentially raising $75 billion if the greenshoe option is triggered, compared to roughly $25 billion for Saudi Aramco and other past giants.
Why did Novogratz compare the SpaceX IPO to the Palm IPO?
Novogratz compared the SpaceX listing to the Palm IPO, which coincided with the peak of the dot-com bubble, saying "This is how great markets end." He issued this warning as a cautionary note about market hype, though he conceded the SpaceX story "could be more real" than that earlier episode.
How did Galaxy Digital structure its voting shares differently from Coinbase?
Novogratz rejected the super-voting share structure used by companies like Coinbase, where founders retain control regardless of economic stake. He opted for a one-share-one-vote structure for Galaxy Digital because it felt "more fair and more democratic," which he did "kind of ideologically."
