Elon Musk’s two flagship companies, Tesla and SpaceX, are considering a potential merger that could create one of the world’s largest corporate entities, currently valued at around $3.5 trillion. Beyond the massive valuation, the merger would create a single corporate entity that owns roughly 30,221 BTC, worth about $2.47 billion.
Crypto analytics firm CryptoQuant tweeted regarding the development:
The development has taken the world by storm, as it would create the biggest corporate merger in history. Musk himself confirmed the development in a recent SpaceX earnings call. He explained that both companies have formed committees of independent directors to evaluate this major undertaking.
The news is resonating particularly with crypto users, as SpaceX holds 18,712 BTC while Tesla holds 11,509 BTC. Together, they currently hold billions in bitcoin and have a promising future ahead.
While Musk has flip-flopped on BTC as a reserve asset, his long-term interest in the premier digital currency remains, as his companies still hold a large amount. The merged company will likely continue holding the digital currency long term. Neither firm has sold any significant amount of crypto in recent years and appears to be HODLing.
The Mother of all Mergers
While the corporate world is abuzz with details of this development, the merger will likely take time, and Musk has recused himself from the process because he’s involved with both organizations.
“I do think there’s a lot of merit to combining the companies,” Musk said, citing synergies in artificial intelligence, robotics, chip design, and related technologies. He once again mentioned the artificial superintelligence singularity and how the world is approaching it. Any deal would require approval from both companies’ shareholders.
Both companies’ share prices immediately rose after Musk’s admission, even though key merger details are still awaited. It remains to be seen whether they will reorganize under a single holding company or whether the larger company will absorb the smaller one.
Musk has limited his involvement in Tesla in recent years, and SpaceX has emerged as his de facto favorite company. His ultimate dream is of sending human beings to Mars. However, the unveiling of the theatrical, rocket-powered Tesla Roadster has reignited interest in the electric-car manufacturer after several years of decline, as Chinese EV manufacturers have taken the global lead in the segment.