Binance pledges $500 million to invest in Twitter alongside Elon Musk

Fry Electronics TeamMay 5, 2022
0
Binance pledges $500 million to invest in Twitter alongside Elon Musk

According to data filed with the United States Securities and Exchange Commission, major crypto exchange Binance has participated in Elon Musk’s $44 billion acquisition of Twitter.

On May 5, Musk filed an amended general statement on the acquisition and announced that Twitter had received new funding commitments totaling approximately $7.2 billion related to the merger agreement.

According to the document, Binance is one of 18 co-investors in the acquisition, alongside major crypto industry players such as Sequoia Capital Fund and Fidelity Management and Research Company.

With $500 million invested, Binance is the fourth largest contributor, behind Lawrence J. Ellison Revocable Trust, which invested $1 billion. Sequoia Capital and VyCapital donated $800 million and $700 million, respectively.

Binance CEO Changpeng Zhao then took to Twitter after the filing became public and described the company’s investment as a “small contribution to the cause.”

Each public equity investor mentioned in the document has agreed to contribute at or near completion of the acquisition. “Equity investors have reserved the option to settle such equity investor’s equity obligation with common shares held by such equity investor having a value of $54.20 per share,” the document reads.

Related: Elon Musk trades Twitter avatar for a horde of bored monkeys, BAYC land price surges 10 ETH

Billionaire Tesla CEO and founder Musk officially announced the acquisition of Twitter on April 25, with the $44 billion transaction expected to close in 2022, subject to Twitter shareholder and regulatory approvals. He previously said that one of his top priorities for Twitter would be to remove “spam and scam bots and the bot armies,” including those related to crypto.

As previously reported by Cointelegraph, over the past year Musk has been pushing Binance to address some issues on its platform, which led to a small Twitter battle with Binance’s CEO. Musk specifically raised an issue related to some stuck Dogecoin (DOGE) withdrawals on Binance and asked Zhao to explain the issue.