As SpaceX prepares to make its Nasdaq debut this Friday, a relatively obscure Canadian investment firm is poised to realise extraordinary returns from its early stake in the aerospace giant. Stack Capital Group Inc. stands to gain over 1,100 per cent on its investment, potentially transforming an $8 million outlay into a valuation exceeding $100 million, marking a significant milestone for the Toronto-based company.
Stack Capital’s Strategic Investment
In October 2021, Stack Capital invested $5 million into Space Exploration Technologies Corp., more commonly known as SpaceX, followed by an additional $3 million in March 2025. Holding onto this position for over five years, Stack’s Chief Executive Officer, Jeff Parks, expressed no urgency to sell, emphasising the long-term potential of the investment. “It is a monumental win,” he stated in an interview. “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.”
SpaceX’s Record-Setting IPO
SpaceX’s initial public offering is set to be one of the largest in history, aiming to raise $75 billion at a staggering valuation of $1.75 trillion. This ambitious IPO not only highlights the growth potential of the space and technology sectors but also serves as a validation of Stack’s business model, which centres on acquiring shares in major private companies to allow early investors to exit before public listings. “Our value-add is to provide individuals who do not have and cannot get exposure to the private markets, to give them that access,” Parks explained.
Stack’s investment in SpaceX constitutes nearly one-third of its portfolio, underscoring its significance to the firm’s overall strategy. The company has also made sizable investments in other tech entities poised for IPOs, including OpenAI, for which Stack acquired an $8 million stake in September 2025, now valued at approximately $15 million. Other notable holdings include Canva and Hopper, both of which are expected to launch their own multi-billion-dollar IPOs in the near future.
Market Reactions and Future Outlook
The market has responded positively to Stack’s performance, with its Toronto Stock Exchange-listed shares more than doubling in value over the past year. Parks remains optimistic about further growth, citing the significant trading multiples enjoyed by similar U.S.-based investment firms. In contrast, Stack’s current multiple stands at around 1.6 times its net asset value, suggesting substantial room for improvement.
Looking ahead, Stack intends to eventually divest its SpaceX holdings, as Parks remarked, “We don’t provide a value-add by holding public companies for people.” As proceeds from the SpaceX investment are realised, Stack plans to reinvest in other high-growth startups, particularly those in the artificial intelligence sector. “From data centre build-outs to robotics to foundational models, that is the kind of stuff we are looking at right now,” Parks added, highlighting the ongoing capital influx into AI-driven companies.
The Growth of SpaceX’s Revenue
Analysts predict remarkable growth for SpaceX, with revenues projected to rise from less than $19 billion in 2025 to nearly $160 billion by 2028, and potentially exceeding $300 billion annually by 2030. By 2040, projections suggest that SpaceX could generate up to $3.4 trillion in revenue, largely driven by its expanding AI division. Recently, this segment secured a lucrative deal with Alphabet Inc. that will provide SpaceX with monthly payments of $920 million through mid-2029, reinforcing the company’s financial strength.
The Broader Investment Landscape
Stack Capital is not alone in its optimism towards SpaceX. The Ontario Teachers’ Pension Plan invested approximately $220 million in the company in 2019, which is now valued at as much as $11 billion. As more firms remain private for extended periods, the demand for access to private equity continues to rise. Companies like Vancouver’s Hiive are emerging as platforms that facilitate trades in private equity, echoing the growing trend of alternative investment avenues.
Why it Matters
The impending SpaceX IPO is not just a significant financial event for Stack Capital; it encapsulates a broader shift in investment strategies as firms seek exposure to high-growth private companies. As retail investors gain access to lucrative markets that were once the domain of institutional players, the implications for the financial landscape are profound. This trend not only democratizes investment opportunities but also positions innovative companies at the forefront of economic growth, fostering a new era of capital markets.
