(Bloomberg) — Elon Musk’s day-trading fan club is on a buying spree in some of the most speculative parts of the market, from the joke cryptocurrency Dogecoin to a controversial closed-end fund that counts SpaceX among its key holdings — all in hopes that Donald Trump’s election will release more animal spirits.
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Destiny Tech100 Inc. (DXYZ) (ticker DXYZ), which holds shares of private-market unicorns like SpaceX and Sam Altman’s OpenAI, has already surged roughly 280% over the past week since Trump recaptured the presidency, data compiled by Bloomberg show. The rally triggered multiple volatility halts Monday, and sent its shares up as much as 38% after a 64% jump Friday. Meanwhile, Dogecoin was up nearly 20% in Monday trading amid a broad crypto rally.
Musk was one of Trump’s biggest supporters and a key voice during the closing days of the election. Now that Trump is president-elect, Musk’s companies are hot properties among the retail investing crowd.
While investing in SpaceX is anything but simple for individuals, Destiny Tech100 gives small traders a way to get a piece of the popular private firm. The fund, which reported $56 million net asset value, had about 38% of its holdings in SpaceX as of end of June, according to its filing.
Beyond the closed-end fund, pretty much anything tangentially related to Musk’s vast business empire is catching a bid. Shares of Tesla Inc. (TSLA) are up 42% in a week despite Trump’s well-known skepticism of electric vehicles. Dogecoin (DOGE-USD) has more than doubled over the same time after Musk touted it on his social-media platform X.
“Musk made a huge bet on Trump, and this is the payoff,” said Steve Sosnick, chief strategist at Interactive Brokers.
A Victor’s Spoils
Indeed, Trump’s win is considered as a boon for Elon Musk’s companies, as the founder aggressively backed the “Make America Great Again” ticket. Tesla, which is the only publicly traded entity of Musk’s empire, climbed back over $1 trillion in market value last week after slumping badly through the first four months of the year.
Often referred to as the original meme stock, Tesla has consistently been one of the most heavily traded names among the mom-and-pop investor crowd over the past several years, according to data from Vanda Research. The first time it crossed $1 trillion in market value was part of a retail-trading frenzy that lifted other technology stocks as well, in the midst of 2021’s post-pandemic euphoria.
