Binance Invest $500M to Support Musk’s Twitter Purchase

The exchange has committed to financially support the billionaire’s quest to purchase Twitter citing Musk has a ‘blank cheque.’

Binance Backs Musk’s Twitter Move

Global cryptocurrency exchange Binance has confirmed its intention to invest $500 million in Twitter alongside Elon Musk as the Tesla billionaire seeks to obtain ownership of the social media platform. 

The crypto giant published a press release confirming the move on May 5th. The ongoing saga of Musk’s Twitter purchase has undergone another interesting twist as Binance is among a consortium of 17 investors that includes venture capital firm Sequoia Capital, Oracle co-founder and Tesla board member Larry Ellison and investment firm Fidelity. 

According to the Financial Times (FT), Musk has secured $7.14 billion of the $44 billion committed to the purchase. CEO Changpeng Zhao (CZ) posted on Twitter that the funds are a “small contribution to the cause”. The remainder of the funds will come through a combination of loans and equity. Other investors include Qatar’s sovereign wealth fund called the QIA and Saudi Prince Alwaleed Bin Talal bin Absulaziz al Saud, an existing Twitter investor. https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=eyJ0ZndfZXhwZXJpbWVudHNfY29va2llX2V4cGlyYXRpb24iOnsiYnVja2V0IjoxMjA5NjAwLCJ2ZXJzaW9uIjpudWxsfX0%3D&frame=false&hideCard=false&hideThread=false&id=1522168304852512769&lang=en&origin=https%3A%2F%2Fwww.bsc.news%2Fpost%2Fbinance-invest-500m-to-support-musks-twitter-purchase&sessionId=d11ad6ede418a62651462a7920493f1066cb3884&theme=light&widgetsVersion=c8fe9736dd6fb%3A1649830956492&width=550px

According to FT, in an article CZ retweeted, Binance’s CEO said that the investment deal came together in a short period of time. FT cites CZ saying: 

“We, from our friends, heard that [Musk] was looking for third party investors, and are we interested? We immediately said that we are. He didn’t have a plan for Twitter. There isn’t, like, a business plan. So it wasn’t that type of discussion.” 

CZ is also quoted as saying that the contribution from Binance is “more of a blank cheque.” Could this mean some sort of branding partnership or perhaps Binance becomes the exchange of choice for Twitter? It will be interesting to see how a crypto exchange fits into this equation and what the return on investment will be.

Source : bsc.news

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