Tesla and SpaceX are exploring a possible merger that could unite their combined Bitcoin holdings under one corporate entity. According to SpaceX's June IPO filing, the company holds 18,712 BTC, while Tesla reported 11,509 BTC this week, bringing their combined position to 30,221 BTC valued at approximately $2.5 billion at current prices.
If merged, the combined Bitcoin holdings would rank sixth among public companies, positioned ahead of Coinbase and Bullish but behind MARA Holdings.
Merger Status and Shareholder Approval
Elon Musk discussed the proposed merger during SpaceX's earnings call on Tuesday, noting that both companies had formed special committees of independent directors to study the possibility. While Musk indicated the merger would make sense strategically, no agreement has been reached. The committees have not finalized terms, and shareholder approval would be required. Tesla would need backing from holders of 50% of all shares, which Musk described as a significant hurdle.
Tesla's Bitcoin Transaction History
Tesla first disclosed a $1.5 billion Bitcoin purchase in February 2021, stating the investment would diversify its cash reserves. In April 2021, the company sold 10% of its holdings for $272 million, with Musk explaining the sale was intended to demonstrate Bitcoin's liquidity as a cash alternative.
A larger sale occurred in July 2022 when Tesla converted 75% of its remaining Bitcoin into fiat currency, generating $936 million. Musk attributed the move to the company's desire to preserve cash amid uncertainty related to China's COVID-19 lockdowns.
Market Impact Analysis
Prominent trader Scott Melker noted that consolidating the two companies' Bitcoin holdings would not generate new demand for the asset, since the Bitcoin already exists on their respective balance sheets. Melker stated that a merger would consolidate ownership rather than remove supply from the market, and neither company has indicated plans to buy or sell additional Bitcoin.
