$50 million in EchoStar options changed hands Wednesday, with volume topping 60,000 contracts—more than triple the past month's daily average—as traders chased exposure to SpaceX's newly filed IPO.
SpaceX said in its SEC filing late Wednesday it aims to raise $75 billion at a $1.77 trillion valuation, a deal that would rank as the biggest IPO ever.
EchoStar has become a proxy because the $35 billion Colorado networking company owns an estimated 3% of SpaceX, acquired through a September spectrum deal tied to Starlink.
Call activity outnumbered puts by about 5 to 1, though sold calls ran nearly three times bought calls, suggesting spread hedging after EchoStar's stock surged 650% over the past year and slipped 11% in the past month.
The underlying SpaceX-EchoStar spectrum agreement lets SpaceX deploy upgraded laser-linked satellites that it has said could expand cellular network capacity by more than 100 times.
Why do experts value SpaceX half a trillion dollars less than its ambitious $1.77 trillion IPO valuation?
With massive debt but a key SpaceX stake, is Echostar a brilliant investment or a ticking time bomb?
SpaceX’s $74 Billion IPO and EchoStar’s High-Stakes Bet: How Mega-IPOs Are Reshaping Space, AI, and Telecom
Overview
SpaceX is set for a record-breaking IPO on June 12, 2026, following its merger with xAI that valued the combined company at $1.25 trillion. The IPO will offer 555.555 million shares at $135 each, aiming to raise $74.4 billion—the largest IPO ever. This massive capital raise highlights a new trend where companies stay private longer, growing to immense scale before going public. SpaceX’s size and unique approach, shaped by its recent merger and founder-driven strategy, are reshaping how companies enter the stock market and setting new standards for future mega-IPOs.