SpaceX is preparing to go public at a valuation that would make it the most valuable company to ever hit the public markets, and the banks fighting for a piece of the deal are learning a hard lesson: Elon Musk’s company sets the terms, not Wall Street.

The planned IPO targets raising $75 billion through the sale of 555.6 million shares priced at $135 each, which would value SpaceX at roughly $1.75 trillion. And the banks lining up to participate? Several of the smaller ones are essentially working as glorified salespeople, marketing shares for small fees without earning credit roles in the deal.

A syndicate built on hierarchy

Goldman Sachs holds the coveted lead left underwriter position, the spot that commands the most prestige and compensation. Morgan Stanley and JPMorgan Chase are also part of the syndicate, which spans 21 to 23 investment banks total.

Junior banks in the syndicate are being handed what amount to distribution tasks. They get to place shares with their clients, collect modest fees, and put SpaceX on their deal tombstones.

Musk’s fee squeeze

SpaceX is negotiating underwriting fees below 0.75%. In the context of a $75 billion raise, that still translates to roughly $500 million in total bank compensation.

Traditional IPO underwriting fees typically run between 3% and 7% for most deals, with mega-offerings historically coming in around 1% to 2%. SpaceX pushing below 0.75% is aggressive even by large-deal standards.

That $500 million in total fees gets divided across more than 20 firms, with the lion’s share flowing to Goldman Sachs, Morgan Stanley, and JPMorgan Chase based on their senior roles. What trickles down to the bottom of the syndicate is a fraction of a fraction.

Bitcoin on the balance sheet

SpaceX’s S-1 filing revealed something that caught the crypto world’s attention: the company holds 18,712 Bitcoin, valued at approximately $1.45 billion at recent prices.

The Bitcoin holdings represent less than 0.1% of the targeted $1.75 trillion market cap.

Crypto exchanges have already responded by launching pre-IPO products linked to SpaceX shares, creating synthetic exposure vehicles for traders who want to speculate on the listing before it happens.

The company plans to list on Nasdaq under the ticker SPCX, with a target date of June 2026.

What this means for investors and Wall Street

Investors eyeing the IPO should pay attention to the fixed pricing approach. By setting shares at $135 before the full marketing push, SpaceX is attempting to reduce the kind of first-day volatility that has characterized recent tech IPOs.

The Bitcoin exposure adds a layer of complexity to any investment thesis. If crypto markets decline sharply, SpaceX’s balance sheet takes a hit, even if the core rocket and Starlink businesses are performing well.