HyperLiquid’s 5x leveraged perpetual stock, which is widely tracked in connection with SpaceX’s impending IPO, which is expected to be the largest in history, fell for the third consecutive week.
The product, labeled SPCX, was trading around $157 on Wednesday, down about 27% from its mid-May launch price of about $216, but at one point reached $230.
This does not mean traders are betting on SpaceX, as SPCX is still trading above its IPO price of $135. However, the implied first-day premium has been significantly reduced. SpaceX paid about 60% more than its asking price in the May deal, and as of Wednesday it was up to nearly 16%.
The company set the offering price at $135 per share, with no price range for investors to increase or decrease the price during the bookbuild. In most IPOs, bankers collect orders and fluctuate the price based on demand. However, SpaceX chose a fixed price path where investors either receive a price or not.
This leaves SPCX Perp as one of the few places where the price associated with SpaceX actually moves before the IPO.
This agreement does not give holders any shares, rights of assignment, or any claims against SpaceX. This is a cash-settled derivative that allows traders to bet on where a company’s stock value should trade. Unlike an expression of interest in an IPO, PERP traders are putting their money at risk and can lose their money before the initial shares change hands.
The official book is still huge. According to Reuters, SpaceX has attracted more than $250 billion in investor interest for its $75 billion funding, and the contract is several times oversubscribed. Large investors often demand more shares than they expect to receive, especially for high-profile deals.
SPCX price suggests traders still expect a premium on the $135 offer.
This may partly reflect broader market pressures. Cryptocurrencies are falling in the lead-up to the IPO, with Bitcoin still well below its January high. Some investors may also be raising cash to fund SpaceX allocations, increasing pressure on the same risk market in which SPCX trades.
