Binance devotes $500 Million to assist Elon Musk in taking over Twitter

Elon Musk's $44 billion Twitter acquisition bid was aided by a dozen startups, including Binance.


Binance, a cryptocurrency exchange, has pledged $500 million in equity to help finance Elon Musk's takeover of Twitter.
Binance

Binance, a cryptocurrency exchange, has pledged $500 million in equity to help finance Elon Musk's takeover of Twitter.


In addition, Binance has the fourth-largest commitment among a dozen equity investors backing Elon Musk's buyout of Twitter, according to a revised 13-D schedule filed with the US Securities and Exchange Commission on Wednesday.


According to the petition, Binance put up $500 million, while the Lawrence J. Ellison Revocable Trust, Sequoia, and VyCapital put up $1 billion, $800 million, and $700 million, respectively.


Binance CEO Changpeng Zhao responded to the news on Twitter, calling the exchange's $500 million investment a "little contribution to the cause," apparently alluding to Musk's dedication to free expression on the social media platform.


The newly disclosed pledges are worth roughly $7.139 billion, or 16.225 percent of what Musk paid for Twitter.


Elon Musk, the co-founder and CEO of Tesla and the world's richest person with an estimated net worth of roughly $268 billion, bought 100% of the social media behemoth Twitter for $54.20 per share in a deal worth around $44 billion in April.


"Twitter has tremendous promise." "I'll unlock it," Musk wrote in an offering letter to Twitter's board chairman, Bret Taylor.


He also expressed his conviction that going Twitter private was the only way to ensure it could continue to be a beacon of free speech.


Musk reduced the aggregate principal amount of the margin loans secured against his Tesla shares from $12.5 billion to $6.25 billion, and increased the equity funding commitments from $21 billion to $27.5 billion, according to the updated filing.


Loans secured against Twitter assets are said to make up the rest of the funding.


The announcement appears to have had just a minor impact on BNB, with the token up 4.2% on the day.