Binance pledges to co-invest $500 million in Musk's acquisition of Twitter

Major cryptocurrency exchange Binance is involved in Elon Musk's $44 billion acquisition of Twitter, according to data filed with the U.S. Securities and Exchange Commission.

On May 5, Musk filed a revised acquisition general statement announcing that Twitter had received new financing commitments totaling approximately $7.2 billion in connection with the merger agreement, subject to the conditions in the co-investor equity commitment letter .

According to the filing, Binance is one of 18 co-investors in the acquisition, along with major crypto industry players including Sequoia Capital Fund and Fidelity Management and Research Company. participants.

Binance invested $500 million, the fourth largest contributor after the Lawrence J. Ellison Revocable Trust, which invested $1 billion. Sequoia Capital and VyCapital donated $800 million and $700 million, respectively.

After the filing was made public, Binance CEO Changpeng Zhao later tweeted that Binance’s investment was a “small contribution to the cause.”

Each of the listed equity investors mentioned in the filing commits to contribute on or before the completion of the acquisition. “The equity investor retains the option to satisfy the equity investor’s equity commitment using shares of common stock held by the equity investor, each valued at $54.20,” the filing reads.

Musk, the billionaire CEO and founder of Tesla, officially announced the acquisition of Twitter on April 25. The $44 billion deal is expected to be completed in 2022, subject to approval from Twitter shareholders and regulatory approvals. Agency Approval. He has previously said that one of his top priorities for Twitter is to remove "spam and scam bots and armies of bots," including those related to encryption.

As previously reported by Cointelegraph, Musk pushed Binance to fix some issues on its platform last year, sparking a small Twitter battle with the Binance CEO. Musk specifically mentioned an issue related to Dogecoin (DOGE) withdrawal stuck on Binance, asking Changpeng Zhao to explain the issue.