Shares of Destiny Tech100 Inc. tumbled 7.2% to $36.42 on June 9, extending a punishing week that has erased roughly $10.80 per share — a 23% decline from the June 2 close of $47.23. The selloff is happening while the broader U.S. market trades higher, underscoring that this is a company-specific problem, not a macro one. At the heart of the rout: investors are recalculating whether a fund trading far above the value of its actual holdings can sustain that gap while simultaneously printing new shares.
• Shareholders Are Paying a Huge Markup — and the Gap Is Shrinking Fast
DXYZ's net asset value — essentially what its portfolio of private-tech stakes is worth per share — was $24.56 as of March 31, 2026. At today's $36.42, buyers still pay a ~48% premium over that figure, but this markup has collapsed from the 151% premium that existed when the stock traded at $61.66 on May 21. For a fund whose price is driven by sentiment rather than daily earnings, premium compression can feed on itself — every tick lower spooks the next holder.
• A $1 Billion Share-Printing Machine Hangs Over the Stock
The fund has an at-the-market program — a mechanism to sell freshly created shares directly into the open market — with capacity of up to $1 billion through agent Jefferies.
In just the first quarter of 2026, Destiny sold 8.5 million new shares at an average price of $28.76, raising roughly $24.1 million after fees. Every share sold dilutes existing holders. With the stock now lower, the fund must issue more shares to raise the same dollar amount, accelerating the dilution.
• Big Names in the Portfolio Haven't Been Enough to Stop the Bleeding
The fund holds exposure to high-profile private companies including Anthropic, SpaceX-related ventures, and defense startup Hermeus.
Social-media speculation about a potential SpaceX IPO at a $1.77 trillion valuation briefly juiced DXYZ in May, but that narrative has faded. Without a concrete liquidity event — like an actual IPO — to crystallize value, the portfolio remains hard to price and easy to doubt.
• High Fees Add Another Layer of Drag
The fund's annual expense ratio stands at 4.98%, meaning nearly five cents of every invested dollar is consumed by costs each year. For shareholders already absorbing premium erosion and dilution, that fee load compounds the pain — and makes it harder for NAV growth alone to bail out buyers at today's prices.