Tesla–SpaceX merger talks could put 30,221 Bitcoin under one roof

Elon Musk confirmed that Tesla and SpaceX are exploring a merger that could combine their existing Bitcoin holdings under one company.

Speaking during SpaceX's Oct. 20 earnings call, Musk said both companies had established special committees of independent directors to evaluate a potential combination.

Musk described the merger as a good idea but said he would not participate in negotiations because of his ownership interests in both businesses. He also cautioned that the committees had not yet agreed on transaction terms and might never reach an agreement.

The potential deal would combine SpaceX's aerospace, satellite communications and AI operations with Tesla's electric vehicles, autonomous driving technology and humanoid robotics business. Musk highlighted opportunities to integrate their AI infrastructure, chip development and manufacturing capabilities, including the jointly developed Terafab semiconductor project.

The disclosure follows SpaceX's third-quarter results, with revenue up 161% to $15 billion, including $8 billion from its Super Intelligence segment.

Merger could create sixth-largest corporate Bitcoin holder

Beyond its technology businesses, the proposed merger could consolidate two of the world's largest corporate Bitcoin treasuries.

According to the companies’ June 30 regulatory filings, SpaceX holds 18,712 BTC, while Tesla owns 11,509 BTC.

Their combined holdings of 30,221 BTC would be worth about $2,508 million at a Bitcoin price of around $83,000.

The combined entity would rank sixth among publicly traded corporate Bitcoin holders, behind Strategy, Metaplanet, Twenty One Capital, MARA Holdings and Strive, based on BitcoinTreasuries’ October 21 rankings and the companies' disclosed holdings.

However, the transaction would unite businesses with contrasting cryptocurrency investment histories.

Tesla bought $1,500 million in Bitcoin in 2021, then sold about 75% of its holdings the following year to strengthen liquidity. SpaceX has maintained a substantial position, which it acquired for about $661 million.

Its latest financial statements valued digital assets at $1,573 million as of September 30, down from $1,637 million at the end of 2025.

The potential consolidation also comes as SpaceX accelerates investments in AI infrastructure, creating competing demands for corporate capital.

The company spent $20 billion on capital expenditure during the third quarter, including $16 billion on AI infrastructure. Management expects spending to rise to $35 billion to $40 billion in the fourth quarter.

Those commitments dwarf the combined Bitcoin portfolio and could influence how the merged company manages its cryptocurrency reserves, particularly given Tesla's history of selling Bitcoin to preserve liquidity.

Wall Street backs SpaceX-Tesla merger logic

Wall Street analysts are increasingly assessing the financial implications of the proposed combination, with JPMorgan outlining a potential SpaceX-led acquisition of Tesla.

In an Oct. 21 research note reported by Investing.com, JPMorgan analyst Rajat Gupta said an all-stock transaction could offer Tesla shareholders a 30% to 35% premium.

The bank cited overlapping engineering talent, AI infrastructure, and chip development as compelling reasons to combine the businesses. It also highlighted SpaceX's approximately $2 trillion valuation as valuable acquisition currency.

Meanwhile, JPMorgan identified Chinese regulatory approval as potentially the biggest obstacle to a merger.

China accounts for roughly 20% of Tesla's revenue, while SpaceX maintains extensive US defense relationships and operates Starlink, which lacks authorization in China.

Gupta suggested Tesla could separate its Chinese operations under majority local ownership while retaining licensing arrangements for its technology and brand.

Such a restructuring could address Beijing's concerns, but it would add complexity to negotiations that already require approval from holders of a majority of Tesla's outstanding shares.