Binance, a cryptocurrency exchange, has committed $500 million in equity to assist fund Elon Musk’s purchase of Twitter and called it a little contribution to the cause. The announcement appears to have had just a little impact on BNB (a crypto token by Binance), with the token rising 4.2% on the day.
Investors to Musk’s Twitter purchase plan
According to an updated 13-D schedule filed with the USA’s Securities and Exchange Commission (SEC) on Wednesday, cryptocurrency exchange Binance has the fourth-largest contribution among a dozen equity investors funding Elon Musk’s buyout of Twitter.
As per the filing, other investors like the Lawrence J. Ellison Revocable Trust, Sequoia, and VyCapital have been contributing $1 billion, $800 million, and $700 million, respectively to Twitter buyout. However, Binance has promised only $500 million in funds. The entire value of the newly disclosed agreements is roughly $7.139 billion, or 16.225% of Musk’s purchase price for Twitter.
Musk reduced the aggregate principal amount of the margin loans secured against his Tesla shares from $12.5 billion to $6.25 billion in the updated filing while increasing the equity funding commitments from $21 billion to $27.5 billion.
Comments from Binance CEO
The Binance CEO Changpeng Zhao has responded to the announcement by calling the exchange’s $500 million investment a little contribution to the cause. This is with reference to Musk’s dedication to free expression on the social media platform.
Twitter purchase
The CEO of Tesla and the world’s richest person with an estimated net worth of over $268 billion purchased 100% of the social media giant Twitter in April for $54.20 per share in a deal worth roughly $44 billion. According to him, Twitter has enormous promise and he plans to tap that potential.
