SpaceX to debut at $1.75T; S&P 500 keeps it out

SpaceX is set to begin trading on June 12 with a market value near $1.75 trillion. S&P Dow Jones Indices confirmed it will not add the company to the S&P 500 because the index requires profitability in the most recent quarter and across the prior four quarters combined. SpaceX reported a $4.94 billion net loss in 2025 and therefore fails that profitability test, making it ineligible for at least 12 months.

Nasdaq moved differently, reducing the usual roughly 90-day waiting period to about five days and making SpaceX eligible for the Nasdaq-100 shortly after the IPO. Funds that track the Nasdaq-100 will be required to buy a significant portion of freely traded shares upon inclusion, creating an immediate source of institutional demand that S&P 500 index funds will not provide.

S&P confirmed it will amend entry rules for broader benchmarks, including the S&P Total Market Index and the Dow Jones US Total Stock Market Index, to allow companies in SpaceX’s position to join those measures. FTSE Russell has already made SpaceX eligible for its global equity indexes under fast-entry provisions.

SpaceX disclosed in its S-1 filing that it holds 18,712 Bitcoin with a cost basis of $661 million. Public investors in SpaceX will have indirect exposure to those Bitcoin through equity ownership. With Nasdaq’s fast-track inclusion and the S&P 500 exclusion, the pool of passive funds that would deliver that indirect crypto exposure will be smaller than it would have been if S&P had relaxed its profitability rule.

Filing estimates and market commentary indicate that SpaceX, together with expected offerings from several AI firms, could contribute to more than $240 billion raised by megacap listings this year. Market participants say that level of new issuance may reduce trading depth in technology, artificial intelligence and cryptocurrency markets.

Art Hogan, chief market strategist at B. Riley Wealth, backed the S&P decision, observing that “making exceptions because companies are so large and have been private so long yet are still not profitable didn’t make a great deal of sense.”

SpaceX’s IPO will be the largest in history when trading begins on June 12. The S&P 500 will not include the company for at least a year.