Ark Invest secured a stake of nearly 3.3 million shares of SpaceX, valued at over $500 million, on the day the company made history with its IPO. Data indicates that these acquisitions were likely financed by divesting from other investments. Known for its bullish stance on bitcoin, ARK has set a $1 million price target for the cryptocurrency by 2030.

On the record-setting IPO day, Cathie Wood’s firm sold more than $325 million worth of stocks from at least 13 different companies surrounding the listing. This strategic shift of capital from cryptocurrencies to high-growth ventures like SpaceX, combined with ARK’s projected $2.5 trillion valuation for the company by 2030, highlights a growing preference among institutional investors for AI and space IPOs over digital assets in the short term.

As Elon Musk’s SpaceX went public with the largest IPO in history on Friday, ARK Invest acquired nearly 3.3 million shares (SPCX), ultimately worth over $500 million by day’s end. The shares were priced at $135 during the offering and closed at $160.95, marking an increase of more than 19.2% on their first trading day.

In the week leading up to the IPO, the firm liquidated almost $280 million in stocks and sold an additional approximately 948,000 shares valued at least $48 million on Friday, which included holdings in companies like Advanced Micro Devices, Roku, and Baidu, according to daily statements sent via email.

The ARK Innovation ETF (ARKK) was primarily responsible for these purchases, which resulted in SpaceX representing 3.28% of its total portfolio. The nearly 20% surge on the first day of the largest IPO in history indicates that institutional investors are once again willing to take on high-beta innovation risks. While bitcoin remains the most volatile asset, the current market trend is leaning towards a surge of AI and space IPOs, as companies like OpenAI and Anthropic also prepare to go public.

With a limited pool of risk capital, Cathie Wood’s pivot towards SpaceX, rather than increasing her crypto holdings, suggests that funds are likely to continue flowing out of the cryptocurrency markets in the near future. ARK’s model estimates a $2.5 trillion enterprise value for SpaceX by 2030, with an optimistic scenario nearing $3.1 trillion, based on the company’s $350 billion private valuation in 2024. Additionally, ARK manages a spot bitcoin ETF, and Wood has consistently been a prominent advocate for bitcoin, with long-term price projections reaching seven figures.