Tesla and Spacex CEO Elon Musk has secured $7.139 billion in new funding commitments to fund his acquisition of Twitter, among others from several pro-crypto firms. Cryptocurrency exchange Binance, for example, has pledged to invest $500 million in the social media platform alongside Musk.
Crypto-friendly companies join Elon Musk in buying Twitter
Tesla CEO Elon Musk has secured funding from 18 companies to buy Twitter Inc., his filing with the SEC on Thursday shows.
The SEC filing explains that Musk received equity commitment letters from these investors on May 4 in connection with his proposed acquisition of Twitter, “totaling approximately $7.139 billion in new funding commitments.”
A few pro-crypto companies are on the list of investors, including Sequoia Capital Fund, which has pledged $800 million, crypto exchange Binance, which has pledged $500 million, AH Capital Management (aka Andreessen Horowitz, a16z), which has pledged $400 million, and Fidelity, which has pledged over $300 million.
Binance independently announced on Thursday that it “planned to invest $500 million in a Twitter buyout alongside Elon Musk.” CEO Changpeng Zhao (CZ) commented:
We’re excited to help Elon realize a new vision for Twitter… We hope to play a role in bringing social media and web3 together and expanding the use and adoption of crypto and blockchain technology.
Sequoia Capital is a crypto-friendly VC firm. The company launched a cryptocurrency-focused fund of up to $600 million in February and has 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 it would allow Bitcoin investments in 401(k) retirement accounts.
The largest funding commitment came from Larry Ellison, co-founder of Oracle Corp. and board member of Tesla. He pledged to invest $1 billion.
Saudi Prince Alwaleed bin Talal also agreed to remain an investor in Twitter following Musk’s takeover. He initially refused to consider the Tesla board of directors’ offer to buy the social media platform, saying his offer didn’t come close to matching Twitter’s intrinsic value.
What do you think of pro-crypto companies investing in Twitter alongside Elon Musk? Let us know in the comment section below.
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