Elon Musk said Tesla and SpaceX are considering a potential merger. If it happens, the two companies’ combined holdings of 30,221 Bitcoin could come under one corporate roof.
According to CoinDesk, Musk said on SpaceX’s third-quarter earnings call that both companies had formed special committees made up of independent directors to examine the possibility of a merger. However, the committees have not yet agreed on the terms of any transaction.
How much Bitcoin do the two companies hold?
SpaceX’s reported 18,712 BTC and Tesla’s 11,509 BTC holdings amount to a total of 30,221 BTC. The aspect of a potential merger drawing attention in the crypto market is that these existing holdings could be brought under a single corporate structure.
The merger possibility does not involve a new Bitcoin purchase, but rather brings up the prospect of the holdings already reported by the two companies coming under one roof.
Musk supports the merger but cannot take part in the discussions
Musk said he thought a merger would be a good idea, while emphasizing that shareholder support would ultimately be required. He said he could not take part in discussions between the independent committees because he has an interest in both companies.
For now, the process is proceeding as an evaluation; no agreement or mutually agreed transaction terms have been announced.
SpaceX shares rose after earnings
SpaceX’s third-quarter revenue of $14.58 billion exceeded the market expectation of $12.7 billion. Earnings per share also came in at 35 cents, compared with the expected 15 cents. The company’s shares rose about 9% to $161 in premarket trading on Wednesday.
The next item on investors’ agenda is Tesla’s earnings report, expected after the market closes on Wednesday. Analysts expect revenue of $28.13 billion and adjusted earnings of 44 cents per share.
Not investment advice.