Binance, the world’s largest cryptocurrency exchange, appears to be one of the sources of funding for Elon Musk’s takeover of Twitter. Musk confirmed the move in a filing with the Securities and Exchange Commission.
Binance has made a $500 million equity commitment to the buyout, according to the document, which is an amended 13D. Binance is joining a slew of large private equity firms bidding for a piece of the soon-to-be-privatize Twitter.
CZ, the CEO of Binance, described the move as a “little contribution to the cause.”
Binance’s commitment to the deal is on the higher end of the spectrum, with just roughly four other companies providing larger sums. After the purchase is completed, the exchange may have a significant ownership in the social media behemoth.
Musk has already hinted that Dogecoin payments will be integrated into the network. However, how such a scenario will play out is unknown.
With Binance as a big shareholder, Twitter may be compelled to move even deeper towards crypto adoption, possibly through a collaboration with the crypto exchange.
CZ, the CEO of Binance, has mirrored Musk’s rhetoric on the value of free expression, which was a driving force behind the Twitter transaction. CZ has also expressed support for efforts to crack down on Twitter bots, which have been a frequent target of the CEO’s wrath.
According to the SEC filing, Musk’s total equity commitments for the Twitter transaction are currently at $27.5 billion, more over half of the $43 billion proposed.
Brookfield Asset Management, Fidelity Management, and Sequoia Capital are among the deal’s other investors. Al Waleed bin Talal Al Saud, a Saudi Arabian billionaire and one of Twitter’s top present shareholders, has also committed approximately 35 million Twitter shares to the transaction.
Following pressure from significant shareholders, Twitter’s board recently accepted Musk’s bid. Musk’s per-share offer reflects a more than 15% premium over the social media giant’s last trading price before the offer.
Twitter’s stock is still trading below the $54.20 offer price.
02 Feb 2023
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