SpaceX Just Lost $600 Billion in Value in Less Than Two Weeks. That's Why I'm Buying Bitcoin.

SpaceX (NASDAQ: SPCX) was valued at $1.77 trillion when it went public at $135 per share on June 12, making it the biggest IPO in history. By June 16, its stock had reached a record high of $225.64, briefly boosting its market cap to $2.66 trillion.

As of this writing, SpaceX's stock trades at about $160 with a market cap of $2.02 trillion. Let's see why it lost over $600 billion in value in less than two weeks -- and why it might be smarter to buy Bitcoin (CRYPTO: BTC) as the top space stock fizzles out.

Image source: Getty Images.

Why did SpaceX's stock fizzle out?

At its peak, SpaceX was trading at 142 times its 2025 revenue of $18.7 billion. Even after its pullback, it's still trading at 106 times last year's sales. That's a bubbly price-to-sales ratio for a company that grew its revenue by 33% in 2025. It's also unprofitable, as losses from its space division and xAI (acquired earlier this year) are wiping out Starlink's profits.

Elon Musk claims SpaceX's revenue could surpass $1 trillion by 2030, but we'll need to see how it fares over the next few quarters before putting too much stock in the ambitious outlook. So for now, I'd avoid SpaceX and accumulate some more Bitcoin instead.

Why would Bitcoin be a better investment?

Bitcoin hit a record high of $126,272 last October, but it now trades at about $60,000. It plummeted amid fears of interest rate hikes, which chilled the broader crypto market.

SpaceX's IPO also exacerbated that decline by drawing growth-oriented investors away from cryptocurrencies. But as SpaceX's rally stalls out, they'll likely pivot back to Bitcoin. SpaceX's stock could also plummet once its first lockup periods start to expire in about a month.

Bitcoin still faces some near-term headwinds from higher interest rates, but its long-term catalysts remain intact. More than 20 million of its 21 million tokens have already been mined, and its next halving cycle in 2028 will make it even harder to mine profitably. That tightening supply could attract more investors as expansionary monetary policies devalue fiat currencies.

More companies could build Bitcoin Treasuries, and more governments could accept Bitcoin as legal tender. Its spot ETFs, approved in early 2024, will also attract more retail and institutional investors, making it more comparable to gold, silver, and other commodities.

SpaceX has a promising future, but investors shouldn't pay the wrong price for the right stock. As we wait for SpaceX to stabilize, Bitcoin could remain the more compelling investment.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.