Binance commits $500M in financing to help Elon Musk buy Twitter

The world’s largest cryptocurrency exchange, Binance, is among 18 co-investors in Elon Musk’s Twitter acquisition, alongside firms like Sequoia Capital Fund and Fidelity Management and Research Company. Changpeng Zhao, also known as CZ, CEO of Binance, confirmed on his Twitter page: “A small contribution to the cause.”

The exchange was among several firms to commit funds for the billionaire’s takeover of Twitter. Altogether the 19 investors have featured about $7.2B to help bolster Musk’s equity for his offer. Binance, with a $500 million investment, is the fourth largest contributor, trailing only the $1 billion investment by the Lawrence J. Ellison Revocable Trust. Sequoia Capital and VyCapital each contributed $800 million and $700 million, respectively.

Elon Musk, the founder of Tesla (TSLA), just agreed to buy the social networking company. Musk has stated that he wishes for Twitter to be a supporter of free speech. The millionaire is also a proponent of cryptocurrencies such as memecoin, Dogecoin (DOGE), and Bitcoin (BTC). On May 5, Musk filed an amended general statement of the acquisition, announcing that Twitter received an aggregate of about $7.2B in new financing commitments in connection with the merger agreement, subject to the conditions in co-investor equity commitment letters.

Musk, the billionaire CEO and founder of Tesla, officially announced the acquisition of Twitter on April 25, with the $44 billion transactions slated to completion in 2022, subject to Twitter stockholder and regulatory clearance. He previously stated that removing “spam and scam bots and the bot armies,” including those related to cryptocurrency, would be one of his main goals for Twitter.

According to an updated Schedule 13D filing with the United States Securities and Exchange Commission (SEC) on Wednesday, the world’s largest cryptocurrency exchange was among the equity investors in the deal. A Schedule 13D is a form that must be filed with the SEC if an entity buys more than 5% of a company’s shares. Following Musk’s original attempt to buy Twitter last month, CZ tweeted that he should “Privatize it, issue a token, decentralize it,” adding that a priority should be to reduce spam and scams on the platform.

A Binance spokesperson said that its involvement is “as a supporter of Elon Musk’s plans for Twitter and an investor.” Musk’s takeover has also been endorsed by Twitter founder Jack Dorsey. The Saudi Arabian investor, Prince Alwaleed Bin Talal Bin Abdulazizplans to hold his stake of 35 million shares after the deal. Talks continue with Jack Dorsey and other shareholders about the retention of their Twitter shares.

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