Shares of Destiny Tech100 (DXYZ) cratered to $47.58 on June 1, extending a brutal slide from $66.64 just seven trading days earlier, as two forces collided: SpaceX cut its IPO valuation target, and the fund's own billion-dollar stock-sale program kept flooding the market with new shares.

• SpaceX's $200 Billion Haircut Hits DXYZ Where It Hurts Most

On May 29, SpaceX revised its IPO valuation target to at least $1.8 trillion, down from its earlier goal of over $2 trillion.

Its S-1 filing revealed slowing growth and widening losses. That matters enormously for DXYZ because SpaceX is roughly 14.5–16.2% of its portfolio — the fund's single largest bet. A lower SpaceX price tag mechanically reduces the value of what DXYZ owns, and it shakes the speculative premium investors have been willing to pay for indirect access to the rocket company before it goes public.

• A $1 Billion Share-Sale Machine Keeps Diluting Existing Owners

DXYZ amended its sales agreement with Jefferies in May, authorizing up to $1 billion in new stock to be sold gradually into the open market. That's an at-the-market (ATM) offering — essentially a spigot the fund can turn on whenever it wants, selling fresh shares at prevailing prices. In Q1 2026 alone, the fund sold 8.5 million shares at an average of $28.76, raising roughly $244 million. Every new share sold shrinks existing investors' slice of the pie, and the sheer size of the authorization creates a ceiling on any rally.

• The Stock Costs Roughly Double What the Fund Actually Owns

As of March 31, Destiny Tech100 reported a net asset value of $24.56 per share — the actual per-share worth of its investments. At today's $47.58, buyers are paying nearly a 94% premium over what the portfolio is worth on paper. That gap has already compressed violently from late May, when the stock traded above $60. Short interest stands at 3.0 million shares, or 14.3% of available stock, up 116.8% over the past year — a sign professional traders are betting the premium has further to fall.

• SpaceX's June 12 Listing Could Be a "Sell the News" Moment

SpaceX is expected to list on June 12 , just eleven days away. Once SpaceX trades publicly, any investor can buy it directly — eliminating the main reason retail traders were paying an inflated price for DXYZ in the first place. SpaceX is targeting a debut valuation that would make it larger than Microsoft, despite posting a $4.28 billion net loss in Q1 2026 alone. If the IPO disappoints, DXYZ's premium could evaporate further. If it succeeds, DXYZ may simply become irrelevant as a SpaceX proxy.