Destiny Tech100 Inc. (DXYZ) shares are on a tear on Monday, adding to a remarkable surge of over 300% in just the past week. This surge in the stock price follows the recent victory of Donald Trump in the 2024 US presidential election. The company, a closed-end management investment firm, primarily focuses on investing in private technology companies like SpaceX, OpenAI, and Epic Games.
The stock’s skyrocketing trajectory is largely attributed to the potential for significant benefits to the private space industry under Trump’s leadership. Notably, Destiny Tech100’s largest holding, SpaceX, boasts a 37.6% weighting in the firm’s portfolio. The strong ties between SpaceX CEO Elon Musk and Trump, coupled with Musk’s unwavering support throughout the campaign, have fuelled optimism regarding favorable policy changes.
Under Trump’s second term, the private space industry is expected to experience a surge in investment and support. Industry experts anticipate that the Federal Aviation Administration’s commercial space office, which oversees private rocket launches, will undergo significant changes. Furthermore, sources have hinted that human manned missions to Mars will become a national priority. Doug Loverro, a space industry consultant with experience at NASA during Trump’s first term, anticipates a more focused approach towards a Mars mission, stating, “At a minimum, we’re going to get a more realistic Mars plan, you’ll see Mars being set as an objective.”
SpaceX, with its strong ties to Trump and its leading role in space exploration, is poised to be the biggest beneficiary of these policy shifts. Musk’s endorsement of Trump for president and his substantial campaign contributions solidify the close relationship between the two figures.
The Trump administration is also expected to prioritize fixed-price space contracts, placing more responsibility on private companies like SpaceX. This could significantly impact NASA’s Artemis program, currently reliant on SpaceX’s Starship for moon missions as a stepping stone towards Mars. A shift in focus toward Mars missions under Trump’s leadership could further benefit SpaceX, given Musk’s previous frustrations with the FAA’s alleged delay in Starship development.
The recent price surge in DXYZ shares reflects investor confidence in the company’s future prospects under Trump’s leadership. With a strong portfolio focused on cutting-edge technologies and a direct connection to the Trump administration’s space exploration agenda, Destiny Tech100 is positioned for continued growth and success.
