Binance, one of the world’s largest crypto exchanges, announced its commitment of $500 million to Elon Musk’s takeover of Twitter, claiming their excitement in achieving his new vision for the social media platform. This is according to data filed with the United States Securities and Exchange Commission (SEC) today.
According to the amended filing by Musk, amended 13D, among a dozen equity investors backing Elon Musk’s buyout of Twitter, crypto exchange, Binance had the fourth-largest commitment. The commitment also sees Binance join 18 other co-investors in the acquisition, alongside major crypto industry players like Sequoia Capital Fund and Fidelity Management and Research Company.
Binance CEO, Changpeng “CZ” Zhao, called the move a “small contribution to the cause.”
The Binance stake
We hope to be able to play a role in bringing social media and web3 together and broadening the use and adoption of crypto and blockchain technology.
Changpeng Zhao, Binance CEO
Binance’s commitment to the deal is on the higher end of the spectrum, with only four organisations pledging larger sums. After the purchase is completed, the exchange may have significant ownership of the social media giant.
Related also: Binance denies sharing users’ data with Russia | Here is what you need to know
Musk has already implied that dogecoin payments will be integrated into the network. However, how such a situation will turn out is unpredictable.
In successive tweets, building up to the Twitter takeover, Musk had come out to push for the adoption of dogecoin as a preferred payment coin.
Dogecoin surged as the news of Musk’s 100% buyout offer emerged, rising from around 13.8% to 14.6%.
Despite Musk’s heavy endorsement, the meme coin is currently trading 80% down from its May 2021 all-time high price of 73 cents.
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.
It is yet to be seen what role the bitcoin exchange is set to play in collaboration with Musk to revamping the company, but Binance CEO Zhao downplayed any speculation that the firm would play a major role in decision making.
We are very small percentage-wise. Elon runs the show.
Binance pledged $500 million per the filing, while other institutions, including the Lawrence J. Ellison Revocable Trust, Sequoia, and VyCapital, invested $1 billion, $800 million, and $700 million, respectively. The aggregate value of the newly reported commitments totals around $7.139 billion, 16.225% of what Musk paid for Twitter.
What this means for crypto adoption
While it’s still relatively unclear what exactly Elon Musk has planned for Twitter, he has already hinted at plans to make the site more crypto-friendly.
And with the acquisition of Twitter, it is speculated that his influence on the adoption of crypto as a payment system grows further significant.
Elon Musk recently suggested that the popular meme coin could be merged with Twitter’s premium service, Twitter Blue, as a feasible payment option, and the token rose over 9% in response. After news of his ownership of the microblogging service became public, the cryptocurrency soared about 30%.
We’re excited to be able to help Elon realise a new vision for Twitter.
Changpeng Zhao, Binance’s CEO.
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