Elon Musk Gets Funding From Cryptocurrency -Powered Binance, Sequoia, Fidelity, To Buy Twitter

Tesla and Spacex CEO Elon Musk has secured $ 7.139 billion in new funding commitments to fund his acquisition of Twitter, including from several pro-crypto companies. Cryptocurrency exchange Binance, for example, has pledged to invest $ 500 million in the social media platform along with Musk.

Crypto-Friendly Firms Join Elon Musk in Buying Twitter

Tesla CEO Elon Musk secured funding from 18 companies to buy Twitter Inc., his filing with the U.S. Securities and Exchange Commission (SEC) on Thursday showed.

The SEC filing explains that Musk received equity commitment letters from these investors on May 4 “expecting a total of approximately $ 7.139 billion in new funding commitments” in connection with his proposed takeover from Twitter.

Several pro-crypto companies are on the list of investors, including Sequoia Capital Fund which committed $ 800 million, crypto exchange Binance which committed $ 500 million, AH Capital Management (aka Andreessen Horowitz, a16z) which committed $ 400 million and Fidelity committed more than $ 300. million.

twitter equity investors
List of investors committed to investing on Twitter with Elon Musk. Source: SEC filing

Binance independently announced Thursday that it “plans to invest $ 500 million with Elon Musk in acquiring Twitter.” CEO Changpeng Zhao (CZ) commented:

We are excited to help Elon realize a new vision for Twitter … We hope we can play a role in bringing social media closer to Web3 and expanding the use and utilization of crypto and blockchain technology.

Sequoia Capital is a cryptocurrency-enabled venture capital firm. The company launched a cryptocurrency-focused fund of up to $ 600 million in February and partnered with several major players in the crypto space, including FTX CEO Sam Bankman-Fried and former Twitter CEO Jack Dorsey.

Fidelity Investments has long been pro-bitcoin, calling the cryptocurrency a “superior form of money.” In April, the financial services giant launched crypto and metaverse exchange-traded funds (ETFs) and announced that it would begin allowing bitcoin investments in 401 (k) retirement accounts.

The biggest funding commitment came from Larry Ellison, co-founder of Oracle Corp. and a member of the Tesla Board of Directors. He agreed to invest $ 1 billion.

Saudi Prince Alwaleed bin Talal also agreed to remain an investor on Twitter after the acquisition of Musk. He initially refused to consider the Tesla executive’s offer to buy the social media platform, saying his offer didn’t come close to Twitter’s intrinsic value.

Keywords in this story

binance twitter, Bitcoin, Changpeng Zhao, Crypto, Cryptocurrency, CZ, Elon Musk, elon musk binance, elon musk twitter, loyalty, Fidelity Investments, Sequoia Capital, Twitter, twitter buyout, twitter stock investor

What do you think of the pro-crypto companies investing in Twitter along with Elon Musk? Let us know in the comments section below.

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Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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