Binance commits $500M To Support Elon Musk’s Twitter Takeover

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Binance

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

On May 5, Musk filed an amended general statement of the acquisition, announcing that Twitter received about $7.2 billion in new investment commitments in connection with the merger agreement, subject to the conditions in co-investor equity commitment letters.

Therefore, Binance has positioned itself as one of 18 co-investors in the acquisition alongside major crypto industry players like Sequoia Capital Fund and Fidelity Management and Research Company.

Binance is the fourth biggest financier

Following the $500 million, Binance is now the fourth biggest contributor, following Lawrence J. Ellison Revocable Trust, which invested $1 billion. Sequoia Capital and VyCapital donated $800 million and $ 700 million, respectively.

In response, Binance CEO Changpeng Zhao took to Twitter after the filing became public to describe the company’s investment as a “small contribution to the cause.”

Moreover, each listed equity investor mentioned in the document has committed to contribute to or immediately before the closing of the acquisition. “Equity Investors have retained an option to satisfy such Equity Investor’s equity commitment with shares of common stock held by such equity investors, valued at $54.20 per share,” the document states.

Elon acquires Twitter for $44 billion

The billionaire CEO and founder of Tesla, Musk, officially announced the takeover of Twitter on April 25, with the $44 billion worth transaction expected to close in 2022, subject to the approval of Twitter stockholders and regulators. The outspoken crypto proponent had previously said that one of his top priorities for Twitter was to remove “spam and scam bots and the bot armies,” including those related to crypto.