Breaking: Elon Musk’s SpaceX Considers Dropping Robinhood From IPO Plans, HOOD Stock Falls

Elon Musk’s SpaceX is reportedly considering dropping crypto exchange Robinhood from its IPO plans, with Morgan Stanley’s E*TRADE currently the favorite to lead the stock sale to retail investors. The HOOD stock sharply fell on the back of this development, as the exchange could lose out on being part of the largest IPO in history.

SpaceX May Drop Robinhood From IPO Plans

According to a Reuters report, Robinhood, alongside fellow brokerage firm SoFi, may not participate in SpaceX’s IPO, as Elon Musk’s company is considering cutting them out. This will be a huge blow to the crypto exchange, as the SpaceX IPO could well become the largest in history.

As CoinGape reported last week, SpaceX is considering allocating up to 30% of the IPO shares to retail investors, which is far above IPO standard practices. Robinhood had emerged as one of the firms to lead this sale to retail investors.

The crypto exchange has reportedly pitched for roles on the SpaceX IPO, but Musk’s company could still drop them. According to the report, Morgan Stanley’s brokerage firm, E*TRADE, could get the nod, as it is currently in talks with SpaceX to lead the sale of IPO shares to retail investors.

It is worth noting that Morgan Stanley is the lead underwriter for the SpaceX IPO, which could give E*TRADE an edge over Robinhood and SoFi. However, both firms remain in discussions to handle some of the retail sales. The sources also told Reuters that current plans are not final and could change as SpaceX nears its IPO later this year.

SpaceX is reportedly targeting a June listing and could file for its IPO by April. The company is reportedly looking to raise up to $75 billion at a $1.75 trillion valuation, making it the largest IPO in history, surpassing Saudi Aramco’s 2019 listing.

HOOD Stock Falls

The HOOD stock fell sharply on the back of the report that SpaceX is considering dropping Robinhood from its IPO plans. The crypto stock is currently trading at around $65, down almost 2% today, according to TradingView data.

This extends the stock’s decline over the last five days, with the stock now down over 8% during this period. It is worth noting that Robinhood’s stock is also under pressure due to current crypto market conditions.

The Bitcoin price crashed from a high of around $71,000 last week to as low as $66,000, with the U.S.-Iran war sparking bearish sentiments towards risk assets. Crypto stocks like HOOD are also under pressure due to uncertainty about the CLARITY Act and when it could become law.