SpaceX and Tesla are reviewing a possible merger as independent director committees examine the proposal. The development comes as SpaceX reports strong earnings and its shares rise ahead of Tesla’s upcoming results.

Elon Musk, who serves as CEO of both companies and holds significant ownership stakes in each, confirmed on Tuesday that the businesses are exploring a potential combination. The proposed merger could bring together two of Musk’s largest ventures and consolidate their Bitcoin holdings, which total more than 30,000 BTC.

According to a filing from June, Musk directly holds approximately 36% of SpaceX, with his stake increasing to 48.4% when restricted shares and unexercised options are included. His reported beneficial ownership in Tesla stands at 19.8%, including restricted shares granted as compensation.

Speaking on SpaceX’s third-quarter earnings call, Musk said both companies had established special committees composed of independent directors to evaluate the potential deal. If completed, the merger would combine SpaceX’s reported 18,712 BTC with Tesla’s 11,509 BTC, creating a joint reserve of 30,221 BTC.

Musk said he believes the merger could be beneficial, although he emphasized that shareholders must support the proposal before it can advance.

“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.

His ownership stakes in both businesses prevent him from directly participating in the committees’ discussions about the proposed transaction.

Musk described the situation as an unusual arrangement in which two separate groups are negotiating while he remains excluded from their conversations. He also confirmed that the committees have not yet agreed on the terms of a potential merger.