Binance Commits $500 Million to Co-invest in Elon Musk Twitter Takeover

May 6, 2022

Reading Time: 2 minutes

According to the data filed by the Security Exchange Commission (SEC), Binance, the world’s largest cryptocurrency exchange, has committed $500 million to co-invest in Elon Musk’s Twitter acquisition.

Elon Musk Twitter takeover has been nothing but good news to the crypto community; Dogecoin holders are particularly waiting for how this will affect their holding.

Elon Musk, on May 5, filed a general statement of amendment, making it public that Twitter has received an aggregate of $7.2 billion in new financing commitments in connection with the merger agreement, subject to the condition in co-invest equity commitment letters.

According to the document, Binance is one of the 18 co-investors in the acquisition; other crypto major players in the crypto industry include Sequola Capital Fund and Fidelity Management and Research Company. The $500 million commitment by Binance sees the popular crypto exchange as the fourth largest co-investors in the acquisition; investors with more commitment than Binance are Sequola Capital Fund ($800 million), VyCapital ($700 million), and Lawrence J. Ellison Revocable Trust the largest contributor ($1 billion).

Following the announcement of the commitment, Binance CEO Changpeng Zhao said on Twitter that the company’s investment is just a  “small contribution to the cause.”

Every listed investor in the document has committed to contribute prior to the closing of the acquisition. “Equity investors have retained an option to satisfy such equity commitment with shares of common stock held by such equity investor, valued at $54.20 per share.

The CEO of Tesla and SpaceX last month announced the Twitter acquisition in a deal worth $44 billion, as earlier reported by Mycryptoparadise, subject to the approval of the Twitter board and regulators; Elon has earlier said that one of his top prerogatives for Twitter is to remove “scam and spam bots and the bots armies,” this includes those related to crypto.

However, Elon Musk last year has been pushing Binance to address some issues on its platform when he specifically brought up a matter relating to his favorite meme coin, Dogecoin withdrawals stuck on Binance, asking the exchange to explain what happened, it later led to a Twitter battle with the CEO of Binance.

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