As SpaceX prepares for its highly anticipated debut on the Nasdaq this Friday, one Canadian investment firm is poised to enjoy a staggering paper gain of over 1,100 percent. Stack Capital Group Inc., which is listed on the Toronto Stock Exchange, stands to benefit significantly from its investment in Elon Musk’s aerospace venture, with its initial stake now valued at more than US$100 million.
Stack Capital’s Strategic Investment
Stack Capital acquired its position in SpaceX through a strategic investment route, initially placing US$5 million in October 2021, followed by an additional US$3 million in March 2025. With SpaceX’s initial public offering (IPO) set to raise a record US$75 billion at a projected valuation of US$1.75 trillion, Stack’s shareholding represents nearly one-third of its entire portfolio.
Jeff Parks, co-founder and CEO of Stack, expressed optimism about the long-term potential of SpaceX, stating, “It is a monumental win. Everyone is just so focused on what the stock is going to do on day one or day five, but who cares about that? What is it going to do over the next five years? That is where I think there is so much value creation still to be had.”
The Landscape of Emerging IPOs
The unprecedented scale of SpaceX’s IPO serves as a significant endorsement of Stack’s investment model, which focuses on allowing retail investors access to shares in large private companies. As the market shifts, Stack aims to bridge the gap for individuals who would otherwise lack opportunities in private equity investments.
Mr. Parks emphasised the need for such access, stating, “Our value-add is to provide individuals who do not have and cannot get exposure to the private markets, to give them that access.” Beyond SpaceX, Stack has also made substantial investments in other tech giants, including OpenAI, for which it acquired a stake anticipated to be valued at around US$15 million.
Growing Interest and Stock Performance
Investors have taken notice of Stack’s impressive trajectory, with its shares on the TSX more than doubling within the past year. The firm’s current trading multiple is approximately 1.6 times its net asset value, considerably lower than its U.S. competitors. For instance, the Fundrise Innovation Fund and Destiny Tech100 Inc. are trading at nearly 10 times and double their net asset values, respectively.
Parks indicated that Stack plans to eventually divest its SpaceX holdings, stating, “We don’t provide a value-add by holding public companies for people.” When that time comes, the firm intends to reinvest the proceeds into other burgeoning startups, particularly in the artificial intelligence sector.
Anticipated Growth in SpaceX’s Revenue
SpaceX’s revenue has been projected to skyrocket from under US$19 billion in 2025 to nearly US$160 billion by 2028, with expectations of surpassing US$300 billion by 2030. These projections are bolstered by significant contracts, including a recent agreement with Alphabet Inc. for cloud computing services, which promises substantial monthly payments to SpaceX until June 2029.
Other Canadian investors are also banking on SpaceX’s success. The Ontario Teachers’ Pension Plan, for instance, invested approximately US$220 million in the company back in 2019, a stake that could now be valued at up to US$11 billion.
The Rise of Access to Private Markets
As more companies opt to remain private for extended periods, investors are increasingly seeking opportunities to tap into private markets. Firms such as Vancouver-based The Hiive Company Ltd. are emerging as platforms that facilitate transactions between employees and early investors in private firms. With Hiive now managing around US$300 million in trades per month, the landscape for private investments is evolving rapidly.
Why it Matters
The upcoming SpaceX IPO is not just a milestone for the company; it signifies a paradigm shift in investment strategies, particularly for retail investors seeking exposure to high-growth private companies. With firms like Stack Capital leading the charge, the landscape of investment is becoming more accessible, allowing a broader range of individuals to participate in the success stories of tomorrow. As SpaceX prepares to take flight on the public stage, the implications for investors and the broader market could be transformative.