Ontario Teachers' Pension Plan (OTPP) could be sitting on a paper windfall of as much as $11.6 billion from its early investment in Elon Musk-backed SpaceX as the rocket and satellite company prepares to begin trading on the Nasdaq on June 12.
Early SpaceX Bet Could Deliver Windfall
Tech investor and commentator Sawyer Merritt highlighted the potential return on X, saying the pension fund's roughly $300 million investment could surge in value if SpaceX reaches its target IPO valuation of about $1.75 trillion.
In June 2019, Ontario Teachers' newly formed technology investment arm, now called Teachers' Venture Growth, made its first investment by putting about $300 million into SpaceX. At the time, SpaceX was valued at roughly $33 billion to $36 billion.
IPO Valuation Drives Paper Return
SpaceX is seeking to sell shares at $135 each and raise about $75 billion in what could become the largest IPO in history. Reuters reported the company is targeting a valuation of about $1.75 trillion and plans to trade under the ticker SPCX.
Based on that valuation, Merritt estimated Ontario Teachers' stake could be worth about $11.6 billion, or $15.3 billion Canadian. He said that would equal about $33,500 for each of the plan's 346,000 active and retired members.
Ontario Teachers reported $279.4 billion Canadian in net assets at the end of 2025, making the potential SpaceX gain one of the most striking private-market returns in the fund's history.
Starlink Politics Add Awkward Backdrop
The possible payday is politically awkward as Ontario canceled a $100 million Canadian Starlink contract in March 2025 after Premier Doug Ford said the province would end the deal in response to U.S. tariffs on Canadian goods.
The SpaceX IPO has drawn intense investor demand, but not universal enthusiasm. NYU Stern professor Aswath Damodaran, known as the "Dean of Valuation," has said he would avoid the IPO, arguing the valuation looks too rich despite SpaceX's strong business.
Other space stocks, including Rocket Lab (NASDAQ:RKLB) and Planet Labs (NYSE:PL), have recently reversed after rallying on excitement over SpaceX’s IPO. That profit-taking wiped out billions in market value after several space names had posted triple-digit gains in recent months.
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