Key takeaways:
- Cryptocurrency exchange Binance will help finance Elon Musk’s Twitter acquisition with a $500 million equity investment
- Tesla CEO is looking to acquire the social media giant for roughly $44 billion and take it private
- The price of Binance’s BNB token hit a multi week high on the news but quickly retraced to lower price levels
“A small contribution to the cause,” remarks Binance CEO Changpeng “CZ” Zhao
Binance, the world’s largest cryptocurrency trading platform, committed $500 million to help Tesla CEO Elon Musk take social media giant Twitter private, according to the new SEC filing. The CEO of Binance, Changpeng “CZ” Zhao, stated in a Tweet on Thursday that the sizeable investment is a “small contribution to the cause.”
Twitter’s board unanimously approved Musk’s $44 billion takeover offer last month, which will see Twitter shareholders receive $54.20 for every Twitter stock they own. The all-cash deal is expected to close later this year.
In addition to Binance, Sequoia Capital, which launched a $600 million crypto-focused venture capital fund earlier this year, committed $800 million in equity to help finance Musk’s Twitter acquisition.
The news of Binance’s investment pushed the price of the platform’s native BNB token to a multi-week high of $414. However, the rally was short-lived, as the coin quickly retraced below the $400 mark and is trading in the $370 region at press time.
