Binance Contributes to Elon Musk’s Twitter Takeover

Elon Musk made an official announcement about his takeover of Twitter on April 25. 18 investors are participating in the acquisition, this includes major players in the cryptocurrency industry. Among them are Sequoia Capital and Fidelity Management and Research Company. The illustrious Binance cryptocurrency exchange is the fourth major participant.

Binance Invests in Elon Musk’s Twitter Takeover

The crypto giant supports Elon Musk

Binance, the largest exchange in the cryptocurrency industry, is among the contributors to Elon Musk’s acquisition of Twitter. The latter wants to buy the social media platform for $44 billion, according to an amended 13-D schedule with the United States Securities and Exchange Commission. On May 5, Elon Musk gave an amended general statement deposition.

CEO and co-founder of automaker Tesla, Elon Musk is currently the richest man in the world with an estimated net worth of $268 billion. The latter obtained 100% of the social network Twitter at a sum of 54.20 dollars per share.

According to the amended filing, the total value of margin loans, secured by Musk’s Tesla stock, has been reduced. It went from $12.5 billion to $6.25 billion. In contrast, equity financing commitments increased to $27.5 billion from $21 billion previously. Loans secured by Twitter assets make up the rest of the funding. After the news, Binance’s BNB cryptocurrency jumped 4.2%.

A “small contribution” of half a billion dollars

Lawrence J. Ellison Revocable Trust is the major funder with a contribution of $1 billion. This is followed by Sequoia Capital and VyCapital, with respective stakes of $800 million and $700 million. Binance sits in fourth place with an investment of $500 million.

All investors mentioned in the document undertake to contribute before the closing of the acquisition.

Changpeng Zhao, CEO of Binance, commented on the news on Twitter, calling the contribution “ small contribution to the cause“. This was likely referring to Elon Musk’s commitment to advocating for free speech on Twitter.

Indeed, this was mentioned in the offer letter sent to Twitter Chairman Bret Taylor. According to Elon Musk, the privatization of the company is the key in guaranteeing freedom of expression on the platform. The latter said:“Twitter has enormous potential, which I intend to exploit. »

“A small contribution to the cause” according to Changpeng Zhao

Conclusion

With the Twitter acquisition officially announced on April 25, the deal is expected to close this year, according to Elon Musk. This is subject to approval by Twitter shareholders and regulators. Musk makes one of his priorities, the elimination of “spam and scam bots as well as armies of bots», this includes those related to cryptocurrencies. The year before, Musk called on Binance to fix some issues on Twitter. This was a Dogecoin (DOGE) withdrawal blocking issue, on Binance. This had caused a slight dispute with the CEO of Binance.

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Emile Stantina

Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was obvious. The blockchain is surely the universal tool of tomorrow.

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