Binance Commits $500M In Musk’s Acquisition Of Twitter

May 5, 2022 3:14 pm Comments

It turns out that one of the biggest supporters of Elon Musk’s acquisition of Twitter is the prominent crypto exchange Binance which has committed a $500M investment.

In addition to Binance, Musk has also secured about $800M in funding from other prominent investors like Sequoia Capital and $316M from Fidelity.

In total, a total of $7.1 billion was secured from around 19 different investors which enabled Musk to be able to finance the $44 billion bid to acquire Twitter.

Many believe that this latest move is incredibly bullish for the crypto industry given Musk’s history of advocating the use of digital assets and the fact that crypto firms like Binance had supported this bid.

CNBC reports:

A new filing shows that Oracle co-founder Larry Ellison, venture capital firm Sequoia and crypto exchange platform Binance are among a cohort of investors that plan to support Elon Musk’s $44 billion Twitter takeover.

The SEC filing, published Thursday, shows that Musk has secured $7.14 billion in total.

Multibillionaire Ellison is contributing $1 billion, making him the biggest new backer, while Sequoia is contributing $800 million.

Binance, which has no doubt benefited from Musk’s love of crypto, has committed $500 million.

The new commitments will help Musk to cut the margin loan he has taken from $12.5 billion to $6.25 billion.

The founder of Binance mentioned that the contribution was a small “commitment to the cause” and tweeted that he hopes Elon Musk will help decentralize Twitter and issue a token for the platform.

If such a large platform like Twitter decides to decentralize, it would truly indicate that blockchain and crypto are finally achieving mainstream adoption and finding use cases where decentralization would be the best for the business.

Additionally, this takeover was also supported by the founder of Twitter Jack Dorsey who has been known to be a large supporter of Bitcoin specifically.

So far, shares of Twitter have reacted positively and currently hover around $50 per share.

As a result, it is already coming close to the value of the bid which was priced in at around $54 per share thanks to all the positive news.

CoinDesk reports:

A Binance spokesperson told CoinDesk that the exchange’s involvement is “as a supporter of Elon Musk’s plans for Twitter and an investor.”

Musk’s takeover has also been endorsed by Twitter founder Jack Dorsey.

Shares of Twitter were up over 2% to $50.12, while shares of Tesla were down 0.6% to $946.98 in premarket trading.

Binance coin (BNB) jumped from $399 to $414 following news of Binance’s commitment, before settling at about $407 at the time of writing.

BNB is used within Binance and on BNB Chain, a decentralized network that allows for the creation of decentralized finance (DeFi) applications.

Twitter has already had some crypto related projects in the past such as being able to tip users in crypto, but has yet to seen a large scale adoption of crypto within its platform.

If Twitter does take that route in the future, the crypto tokens that it selects to use would certainly enjoy mass adoption at a quicker rate.

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