Closely followed investor Cathie Wood bought more than $500 million U.S. of SpaceX (NASDAQ: $SPCX) stock on the day of the company’s initial public offering (IPO).
Through her asset management firm ARK Invest, Wood bought 3.3 million shares of SpaceX on June 12, the day of its market debut, building a stake worth more than $500 million U.S.
The shares, priced at $135 U.S. and finished their first trading day at $160.95 U.S. for a gain of 19%. SPCX stock is up another 6% on June 15.
More From Cryptoprowl:
Wood liquidated $280 million U.S. of stocks in the week before the SpaceX IPO to raise capital to buy SpaceX’s stock when it hit the open market.
Stocks sold by Wood included Advanced Micro Devices (NASDAQ: $AMD) and Roku (NASDAQ: $ROKU), among others.
The majority of SpaceX stock bought by Wood has been allocated to her ARK Innovation ETF (BATS: $ARKK), with SpaceX making up 3.28% of the exchange-traded funds’ portfolio.
Wood was an aggressive buyer of SpaceX stock despite many analysts warning that the unprofitable commercial space company is grossly overvalued.
Despite the concerns, an ARK model targets a $2.50 trillion U.S. enterprise value for SpaceX in 2030, with a bull case near $3.10 trillion U.S.
In addition to being focused on technology and innovation, Wood is also a notorious crypto bull and has a long-term price target on Bitcoin’s (CRYPTO: $BTC) price of $1.25 million U.S.
SPCX stock was trading at $170.67 U.S. per share in premarket trading on June 15.