Binance, the world’s largest crypto exchange, confirmed its participation as an equity investor in Elon Musk’s $44 billion deal to purchase Twitter.
“We're excited to be able to help Elon realize a new vision for Twitter. We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology,” Binance CEO Changpeng ‘CZ’ Zhao told in an emailed statement to Decrypt.
Earlier this week, CZ confirmed Binance would stick to its earlier promise to commit $500 million towards Musk’s bid to buy Twitter, emphasizing that the deal would present a chance to help bridge social media and news into Web3.
Zhao took to Twitter late on Thursday to say Binance had already wired the said amount as part of the deal.
Our intern says we wired the $500 million 2 days ago, probably just as I was being asked about Elon/Twitter. https://t.co/gM65GHUnZC
— CZ 🔶 Binance (@cz_binance) October 28, 2022
Binance first revealed plans to back Musk’s acquisition of Twitter in an SEC filing in May this year, with the exchange’s CEO describing the move as "a small contribution to the cause" at the time.
The primary financiers that helped the Tesla and SpaceX chief fund the deal include Morgan Stanley, Bank of America, and Barclays, each committing at least $2.5 billion in debt financing for the deal, according to Forbes.
Other equity investors participating in the acquisition include Sequoia Capital, Qatar Investment Authority, and Fidelity Management & Research, among many others, per CNBC.
Musk completes Twitter takeover
After months of legal and public squabbling over the deal, Musk reportedly finalized his $44 billion acquisition of Twitter late on Thursday, triumphantly posting a 'The bird is freed' tweet and immediately ousting several top executives.
the bird is freed
— Elon Musk (@elonmusk) October 28, 2022
Initial reporting indicates that the new owner has been quick to make cuts to Twitter's c-suit. Those departing reportedly include Twitter's CEO Parag Agrawal, the chief financial officer Ned Segal, and the top lawyer Vijaya Gadde, who played a key role in the decision to ban former president Donald Trump’s Twitter account in January 2021.
Musk himself will take over as CEO, a source told Bloomberg—although it may only be an interim role.
His next move will reportedly be to restore Twitter users who have been handed lifetime bans from the platform, including Trump.
Prior to completing the deal, Musk stated his primary motivation for acquiring Twitter is to ensure the “future of civilization.”
The goal, according to Musk, is to preserve a “common digital town square,” where people with wide-ranging beliefs can debate their views without resorting to violence, rather than splintering into “far right-wing and far left-wing echo chambers.”
Other goals include battling spam bots on Twitter, an issue that may be addressed by implementing blockchain-based solutions.
Bot spam is especially prevalent in the crypto community, where scammers often create fake identities of influencers and other prominent figures, including Musk himself, to lure in investors.