SpaceX is in the headlines as the company recently acquired xAI in the largest M&A transaction in history. A little-known company called Destiny Tech100 (NYSE:DXYZ) could become a multibagger once this entity goes public.
The combined value puts xAI at $250 billion and SpaceX at $1 trillion, which is bringing together SpaceX’s rockets and Starlink satellites with xAI’s Grok chatbot, X social platform, and AI infrastructure. Musk has stated that the “most cost-effective location for AI will be in space” within 2-3 years.
SpaceX CFO Bret Johnsen has been holding talks and Zoom calls with existing private investors since December 2025 to explore the mid-2026 IPO. It is one of the only profitable space companies, with $8 billion of profit last year on $15.5 billion in revenue. It is likely that SpaceX is growing aggressively fast due to the number of space launches that have been conducted. 2019 saw 102 space launches that rose to 324 in 2025.
If you combine the premier space company with one of the leading AI startups, you could get a behemoth of an IPO this year. No other big-name AI startup like Anthropic or OpenAI has gone public, and a company of this caliber will almost certainly be valued in the trillions.
But what if you could invest in it before it even goes public? Well, there’s a way.
Why DXYZ stock stands to benefit the most
Destiny Tech100 is a closed-end fund that trades on the NYSE. It gives you access to shares in private tech companies that are usually only available to venture capitalists and accredited investors. Moreover, since this is a CEF, new shares are not issued or redeemed on demand. The share price is determined entirely by supply and demand rather than the underlying net asset value.
The underlying business gives you the most concentrated SpaceX exposure among publicly traded securities. SpaceX constitutes 23-35% of the fund, and it is quite sensitive to SpaceX-related news. When SpaceX goes public, Destiny Tech100’s underlying NAV will be directly and immediately repriced to reflect the public market valuation. Even if this fund does not hold a massive slice of SpaceX, the weeks leading up to the IPO could see DXYZ stock soar significantly.
The stock trades at a 52% discount to December 2024 highs and can return to those levels or more once hype builds up.
The whole space sector could balloon
The SpaceX IPO is expected to re-rate the whole space industry. With both SpaceX and xAI joining hands, Wall Street will likely slap a triple-digit earnings premium that could rival Palantir (NASDAQ:PLTR | PLTR Price Prediction). A 200x earnings premium on 2025 profit means a $1.6 trillion valuation, something that could end up being a conservative estimate if SpaceX is growing faster than expected and the broader market cooperates.
A multi-trillion-dollar SpaceX could then serve as a benchmark for other space stocks. No other space company is nearly as profitable, but they can still deliver multibagger gains from here. Just like AMD (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), and others caught tailwinds from Nvidia (NASDAQ:NVDA), a similar dynamic could unfold with space stocks.
I still wouldn’t buy DXYZ stock blindly
I would be especially careful about holding it for the long run. This stock is something you should buy before the IPO and then take profits on before it happens. Why?
The fund will lose its purpose when SpaceX goes public, and people will just buy SpaceX directly on the stock market instead. The expenses will turn into a liability, and the stock will be dumped. DXYZ won’t be able to take profits on its shares immediately, either. Standard IPO lock-up periods will apply and last a few months before the fund can monetize gains and reduce concentration.
I still think that this stock will gain tremendously from a SpaceX debut. If you are looking into buying it beforehand, be sure to lock in profits before the IPO happens.
Or, you could buy a Space ETF for more conservative long-term gains. Here are three to look into.
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