Yusko Slams SpaceX's IPO as Mathematically Implausible, Hails Bitcoin's Undervaluation
Mark Yusko, managing director of Morgan Creek Capital, has made some striking comparisons between SpaceX's IPO structure and Dogecoin. According to him, SpaceX is trading at a 'silly' valuation and its low share float with a roughly $2 trillion valuation makes it mathematically incapable of justifying a 10x return.
Yusko likens the situation to Elon Musk's previous approach with Tesla's IPO, where early investors were able to cash out at inflated prices. He believes that SpaceX's deal was a way for Musk and his team to exit retail investors and make money off the hype surrounding the company.
Yusko also pointed out that Bitcoin remains significantly undervalued relative to its fair value, according to a model based on Tim Peterson's application of Metcalfe's law. The model puts a value of between $105,000 and $108,000 on Bitcoin, which is much higher than the current trading level.
The hedge fund manager expects capital to rotate out of overvalued AI equities, such as Anthropic (ANTHZZX), OpenAI (OPEAZZX) and SpaceX, into Bitcoin and gold. He believes that this rotation could be triggered by a correction in AI-related stocks as early as the third or fourth quarter.