Tesla-SpaceX Merger Talks Could Create Major Corporate Bitcoin Treasury

Musk Says Independent Directors Are Reviewing the Merger

Musk discussed the potential transaction during SpaceX’s third-quarter earnings call on Oct. 20 after shareholders requested consideration of a combination. Because Musk holds substantial ownership stakes and executive positions at both companies, he cannot participate directly in the negotiations between the independent committees.

“I mean, this is definitely kind of a question where I feel like I’m tap dancing through a mine field,” Musk said when asked about the prospects for a deal.

He characterized the process as an “odd kabuki dance,” with independent directors from the two companies discussing a possible transaction without his direct involvement.

Musk nonetheless made his own preference clear.

“Do I think it would be a good idea? Yes,” he said.

He also cautioned against treating a merger as “a certainty,” saying that would be “overstating it.”

Asked whether the committees would ultimately reach an agreement, Musk said:

“And obviously, there’s no guarantee that they will.”

Tesla’s approval requirements present another hurdle. Musk said a transaction would need support from 50% of all Tesla shares outstanding, rather than simply a majority of shares participating in a vote. He identified artificial intelligence, chip manufacturing, robotics, orbital infrastructure and connectivity as areas that could be brought together through a combination.

Tesla and SpaceX Would Combine Two Large Bitcoin Holdings

The merger would place Tesla’s and SpaceX’s existing Bitcoin holdings on a single corporate balance sheet.

At a Bitcoin price above $84,000 on Wednesday, the combined holdings were valued at approximately $2.54 billion, potentially making the merged company the world’s sixth-largest publicly traded corporate Bitcoin treasury.

SpaceX’s position only became visible to public markets through its IPO filing. The disclosed balance was more than double the amount blockchain trackers had previously attributed to SpaceX wallets. The combined acquisition cost of the companies’ holdings has been estimated near $1.05 billion.

Neither company has signaled plans for significant new Bitcoin purchases or sales. SpaceX last moved coins in prior years, while Tesla has reported no changes to its position. A merger would therefore consolidate existing Bitcoin rather than create fresh cryptocurrency demand.

A combined company would also change how the holdings are governed and reported. The Bitcoin position would sit inside one public corporate vehicle subject to quarterly disclosures and fair-value accounting. Tesla recently recorded a loss under fair-value accounting as Bitcoin declined.

SpaceX Reports Strong Third-Quarter Results

The merger discussion followed a quarter in which SpaceX reported $14.6 billion in revenue, representing 161% year-over-year growth. Net income reached $4.4 billion, while adjusted earnings before interest, taxes, depreciation and amortization totaled $8.8 billion.

SpaceX’s AI operations generated $7.6 billion, while Starlink ended the quarter with 13.6 million consumer subscribers. Musk also pointed to expected constraints around computing capacity.

“I think we’re going to face a shortage of super intelligence compute. And that shortage is going to remain for a long time,” he told analysts.

Musk’s estimated personal wealth stood near $993 billion on Oct. 21, according to Forbes, after previously crossing the $1 trillion level.