Cathie Wood's ARK Buys $7M SpaceX Stocks After IPO Decline

Cathie Wood's ARK Investment purchased approximately $7 million worth of SpaceX stocks after the company's IPO last month, according to Fortune on the 8th (local time). ARK funded the purchase by selling Alibaba holdings. SpaceX stock closed at $152 on the 9th after falling from a peak of $225, but ARK projects the company could reach a $3.1 trillion valuation by 2030 in its best-case scenario.

ARK Innovation ETF Holds 1.78 Million SpaceX Shares Worth $266 Million

ARK Investment's Innovation ETF now holds 1.78 million SpaceX shares worth approximately $266 million following the recent purchase. SpaceX represents the seventh-largest holding in the fund and accounts for 4% of total assets. ARK purchased approximately 3.3 million shares through exchange-traded funds on the IPO day and bought $32 million worth of stocks during the first major sell-off immediately after listing.

ARK Projects SpaceX Could Reach $3.1 Trillion Valuation by 2030

ARK's aggressive investment strategy is supported by its 2026 flagship report "Big Ideas." The firm stated that SpaceX reduced the cost of sending objects to space by approximately 95% over 17 years since 2008, bringing costs down to approximately $1,000 per kilogram. Elon Musk's orbital data center initiative also contributed to ARK's positive assessment.

Experts Cite High Costs for Orbital Data Center Plans

Boon Ooi, a semiconductor expert and professor at Rensselaer Polytechnic Institute, pointed out that transporting solar panels needed to generate power in space to orbit alone would require enormous costs. SoftBank Chairman Masayoshi Son also noted that building space data centers would require significant time and massive investment.

ARK Sold Alibaba Holdings to Fund SpaceX Purchase

Cathie Wood sold Alibaba stocks to raise funds for the SpaceX purchase. Wood partially withdrew funds in 2021 due to increased Chinese government regulations, then reinvested $16.3 million in Alibaba last year after a four-year break. She reduced her Alibaba position again for this SpaceX investment.

FAQ

How much SpaceX stock did ARK Investment recently purchase? ARK Investment purchased approximately $7 million worth of SpaceX stocks according to Fortune on the 8th (local time).

What is SpaceX's current stock price after its IPO? SpaceX stock closed at $152 on the 9th after falling from a peak of $225 following its IPO last month.

How did ARK fund its SpaceX stock purchase? ARK sold Alibaba holdings to raise funds for the SpaceX purchase, reducing its Alibaba position after reinvesting $16.3 million last year.