Elon Musk’s SpaceX is reportedly considering dropping cryptocurrency exchange Robinhood from its IPO plans, with Morgan Stanley’s E*TRADE currently the favorite to lead a share sale to retail investors. HOOD stock fell sharply on the back of this development, as the exchange may lose out on being part of the largest initial public offering in history.
SpaceX may drop Robinhood from its IPO plans
According to A Reuters reportRobinhood, along with broker SoFi, may not participate in SpaceX’s IPO, as Elon Musk’s company is considering cutting it. This would be a huge blow to the cryptocurrency exchange, as SpaceX’s IPO could become the largest in history.
As CoinGape reported last week, SpaceX is considering customization Up to 30% of the IPO shares are reserved for individual investors, far exceeding standard IPO practices. Robinhood has emerged as one of the companies leading this sell-off for retail investors.
The cryptocurrency exchange has reportedly offered roles in SpaceX’s IPO, but Musk’s company could still walk away. According to the report, Morgan Stanley’s brokerage firm E*TRADE could receive approval, as it is currently in talks with SpaceX to lead the sale of IPO shares to retail investors.
It’s worth noting that Morgan Stanley is the lead underwriter for SpaceX’s IPO, which could give E*TRADE an advantage over Robinhood and SoFi. However, the two companies are still in discussions to handle some retail sales. The sources also told Reuters that current plans are not final and could change as SpaceX approaches its IPO later this year.
SpaceX is reportedly targeting a June listing and could file for an IPO by April. The company is reportedly looking to raise up to $75 billion at a $1.75 trillion valuation, making it the largest IPO in history, surpassing Saudi Aramco’s 2019 listing.
Hood Falls Stock
HOOD stock fell sharply on the back of the report that SpaceX is considering dropping Robinhood from its IPO plans. the Crypto stock It is currently trading at around $65, down roughly 2% today, according to TradingView data.
This extends the stock’s decline over the past five days, with the stock now down more than 8% during this period. It’s worth noting that Robinhood stock is also under pressure due to current cryptocurrency market conditions.
Bitcoin’s price has collapsed from a high of around $71,000 last week to a low of $66,000, with the US-Iran war sparking bearish sentiment towards risk assets. Cryptocurrency stocks like HOOD are also under pressure due to uncertainty about the CLARITY Act and when it could become law.
