SpaceX and Tesla explore merger that would combine 30,221 bitcoin
In brief
- SpaceX and Tesla formed special committees of independent directors to assess a merger, Musk said.
- The committees haven't reached agreement on the terms of any transaction, Musk said.
- A combination would unite 30,221 BTC held across both companies, CoinDesk reports.
- SpaceX shares rose about 9% premarket to $161 after third-quarter results beat forecasts.
A combined stack of 30,221 bitcoin
The crypto angle here is the balance sheet. A combination would unite SpaceX's reported 18,712 BTC and Tesla's 11,509 BTC, for a total of 30,221 BTC, according to CoinDesk's reporting (the companies didn't confirm those figures in the report). CoinDesk's price widget showed bitcoin at $82,687.80 at the time of publication.
Nothing's been agreed yet.
Musk can't sit at the table
Musk owns about 36% of SpaceX outright, rising to 48.4% when restricted shares and unexercised options are included, according to a June filing cited by CoinDesk. His reported beneficial ownership of Tesla is 19.8%, including restricted compensation shares. Because he has interests in both companies, he can't take part in the committee discussions.
He did say where he stands, though.
“Do I think it would be a good idea, yes. But at the end of the day, the shareholders have to be supportive of this,” he said.
So the decision isn't Musk's to make alone. It goes through independent directors on both sides first, and then shareholders.
SpaceX beats, Tesla reports next
The merger news landed alongside a strong quarter. SpaceX shares rose about 9% to $161 in Wednesday's premarket trading, CoinDesk reported. Revenue of $14.58 billion came in above the $12.7 billion consensus, and earnings per share of 35 cents beat the 15-cent forecast.
Spending was heavy too. Capital expenditure reached $19.59 billion (including $16.44 billion for AI), and CoinDesk said the results helped revive AI stocks that had been under pressure.
Tesla is due to report after Wednesday's close. Analysts are forecasting revenue of $28.13 billion and adjusted earnings of 44 cents per share, according to CoinDesk. It's the next set of numbers for anyone tracking both sides of the possible deal, and for anyone watching how much BTC ends up sitting under one corporate roof.
Frequently asked questions
How much bitcoin would a combined SpaceX and Tesla hold?
According to CoinDesk's reporting, SpaceX holds a reported 18,712 BTC and Tesla holds 11,509 BTC. A combination would unite them for a total of 30,221 BTC. The companies didn't confirm those figures in the report.
Why isn't Elon Musk part of the SpaceX-Tesla merger talks?
Musk owns about 36% of SpaceX outright (48.4% including restricted shares and options) and has a reported 19.8% beneficial stake in Tesla. Because he has interests in both companies, he can't take part in the discussions of the special committees of independent directors assessing the deal.
