Musk Floats US$5 Trillion Tesla–SpaceX Merger That Could Unite 30,000 Bitcoin

Elon Musk said Tesla and SpaceX have each formed a committee of independent directors to weigh a merger, a deal that would put both companies’ Bitcoin on one balance sheet.

Musk disclosed the committees on SpaceX’s third-quarter earnings call on 20 October. SpaceX had reported quarterly revenue of US$14.6 billion (AU$20.73 billion) that day, up 161% from a year earlier.

Musk said the committees were set up at the request of shareholders, and that as a conflicted party he cannot join their talks.

“I think some people out there assume that a SpaceX and Tesla merger is a certainty, and I think that would be overstating it,” Musk said.

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Two Bitcoin Treasuries

SpaceX reported holding 18,712 BTC at 30 June, bought at a cost of US$661 million (AU$939 million), in its first quarterly filing after its June stock market debut. Its third-quarter results valued those digital assets at US$1.573 billion (AU$2.23 billion) on 30 September.

Tesla’s digital assets, mostly its 11,509 BTC bought for US$386 million (AU$548 million), were carried at US$962 million (AU$1.37 billion) on the same date. The carmaker bought US$1.5 billion (AU$2.13 billion) of Bitcoin in 2021 and sold 75% of what was left a year later.

BitcoinTreasuries puts the combined holdings at 30,221 BTC, worth US$2.54 billion (AU$3.61 billion) at the end of September. Neither company bought or sold Bitcoin in the quarter, according to the tracker. Together they would rank sixth among listed companies, behind MARA Holdings.

A High Bar for Tesla Holders

Dan Ives of Yorkville Ives & Co. told CBS News a merged company would likely be valued close to US$5 trillion (AU$7.1 trillion). CBS put SpaceX’s value at US$1.98 trillion (AU$2.81 trillion) and Tesla’s market capitalisation at about US$1.5 trillion (AU$2.13 trillion). Ives said Tesla holders would want a premium, with a price of US$500 (AU$710) to US$550 (AU$781) a share.

Tesla shares rose 3.8% to US$387.72 (AU$550.56) in morning trading on 21 October, CBS reported. SpaceX shares gained 9.9% to US$162.41 (AU$230.62).

Musk said a deal would need the support of 50% of all Tesla shares, not just those cast. Tesla’s annual meeting is set for 3 December, and its proxy statement lists three proposals, none of them a merger.

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