The cryptocurrency exchange, Binance confirmed that it helped finance Elon Musk‘s acquisition of the platform with $500 million.
Following the purchase of the social media firm by tech billionaire Elon Musk, it was reported on October 28 that cryptocurrency exchange Binance intended to form a team to work on crypto and blockchain solutions for Twitter. The news broke just hours after Changpeng “CZ” Zhao, the founder and CEO of Binance, revealed that his company had provided $500 million in funding to support Musk’s takeover, making the cryptocurrency exchange the fourth-largest financier of the operation out of the 19 investors who collectively gave Musk $7 billion.
CZ explained that the funds were transferred earlier this week using standard banking services using fiat currency, not through cryptocurrencies or blockchain protocols, and confirmed the transaction on Twitter. The Elon Musk cryptocurrency exchange had stated on Twitter in May 2022 that it will co-invest with other investors like as the Lawrence J. Ellison Revocable Trust, Sequoia Capital Fund, and Fidelity Management. When the investment was made, CZ described it as a “modest contribution to the cause.”
On April 25, Musk, the multibillionaire CEO and founder of Tesla, made the official announcement that his company will be purchasing Twitter for $44 billion, subject to regulatory and stockholder approval. He previously said that one of his key priorities for the business will be getting rid of spam and scam bots, particularly those that deal with cryptocurrencies
Musk and CZ engaged in a brief online conflict before collaborating to acquire Twitter, when Musk urged Binance to resolve problems with Dogecoin (DOGE $0.14) withdrawals. On October 27, Musk paid $54.2 per share to acquire the social networking service, boosting the deal’s overall worth to little under $44 billion. One of the first actions taken by the new owner was to terminate the company’s top executives. Musk is also taking the business private as part of the agreement, which will remove its stock from the public market.
