Crypto Market Update: SpaceX-Tesla Merger Sparks US$2.5B Bitcoin Treasury Watch

Bitcoin price update

Bitcoin (BTC) was priced at US$81,577.22, trading flat over the past 24 hours.

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Ether and altcoin price update

• Ethereum (ETH) was priced at US$2,396.09, trading flat over the last 24 hours.

• XRP (XRP) was priced at US$1.32, trading 0.6 percent lower over the past 24 hours.

• Solana (SOL) was trading at US$104.10, trading flat over the past 24 hours.

Today's crypto news to know

Tesla-SpaceX tie-up could consolidate US$2.5 billion in Bitcoin

Elon Musk floated a potential merger between SpaceX and Tesla (NASDAQ:TSLA) during the company's third-quarter earnings call on Tuesday (October 20).

The boards of both companies formed special committees of independent directors to evaluate the tie-up. Musk cautioned investors that treating a deal as "a certainty" would be "overstating it." If completed, the merger combines two massive corporate Bitcoin stashes onto a single balance sheet.

Tesla currently holds 11,509 BTC, while SpaceX disclosed 18,712 BTC in its June IPO filing.

The combined entity possesses 30,221 BTC, worth approximately US$2.5 billion at recent prices. The companies hold a combined cost basis of around $1 billion, putting their average purchase price near $35,000 per coin.

The consolidation places the merged company among the largest non-mining corporate Bitcoin holders globally, trailing only Michael Saylor's Strategy. .

Trump crypto venture sued over UAE emoluments

Benjamin Greenberg, a shareholder in Circle Internet Group (NYSE:CRCL), sued Donald Trump and his cryptocurrency venture World Liberty Financial in Washington federal court on Thursday (October 22).

Greenberg alleges Trump violated the Foreign Emoluments Clause of the US Constitution by taking unauthorized payments from the United Arab Emirates (UAE).

The lawsuit centers on two specific transactions involving the UAE.

First, World Liberty sold a 49 percent stake for $500 million to an investment vehicle backed by a UAE ruling family member. Second, Abu Dhabi's MGX fund purchased World Liberty's USD1 stablecoin to fund a US$2 billion stake in the Binance crypto exchange.

Greenberg claims this illegal competition financially harms Circle investors, as World Liberty competes directly in the stablecoin market. Trump reported $1.4 billion in earnings from his crypto ventures last year.

A Circle spokesperson clarified the company's non-involvement, stating, "This lawsuit was filed by an individual shareholder, not by Circle. Circle did not initiate, direct, authorize, or participate in the filing."

World Liberty spokesperson David Wachsman called the claims "without merit," adding, "World Liberty Financial is compliant with all US laws and regulations." Wachsman also stated, "No one at World Liberty Financial works for the US government."

Andreessen Horowitz Rebrands Crypto Arm to 'Frontier' in AI Pivot

Venture capital firm Andreessen Horowitz is renaming its crypto fund to "a16z Frontier" and expanding its investment mandate to include artificial intelligence and emerging technologies.

According to The Information, the firm announced the shift in an email to newsletter subscribers on Thursday (October 22).

General partner Chris Dixon will continue leading the fund alongside founders Marc Andreessen and Ben Horowitz. The firm reassured the industry about its commitment, stating, "we will continue to invest in crypto and related ventures and advocate for sensible crypto regulation."

Dixon explained that blockchain technology has faded into the background of everyday products. "Wall Street and fintech companies now regularly launch products built on blockchains. Does that make them crypto companies? The label matters less now."

Dixon further argued investors should define companies "by what they do rather than by the technologies they use."

The newly branded fund targets startups building technologies that take years to develop, including autonomous physical machines and biological advancements.