Cryptocurrency exchange Binance contributed $500 million and venture capital firm Sequoia Capital committed $800 million to fund Elon Musk's $44 billion acquisition of Twitter (TWTR).
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About $7.1 billion was contributed by 19 different parties to make the acquisition of Twitter by Tesla (TSLA) founder Elon Musk, who wants to make Twitter a platform for free expression, a reality. The billionaire is also a well-known proponent of cryptocurrencies such as the memecoin Dogecoin (DOGE) and Bitcoin (BTC).
According to a Schedule 13D filed Wednesday with the U.S. Securities and Exchange Commission (SEC), the world's largest cryptocurrency exchange was among the equity investors in the deal. A Schedule 13D is a form that must be filed with the SEC when a company acquires more than 5% of a company's stock.
Binance founder Changpeng "CZ" Zhao described his contribution as "a small contribution to the cause" in a tweet after the news broke. Following Musk's initial offer to buy Twitter last month, CZ tweeted that he should "privatize, tokenize and decentralize" Twitter, adding that a priority should be to reduce spam and fraud on the platform.
A Binance spokesperson told CoinDesk that the company was involved as a "supporter of Elon Musk's plans for Twitter and as an investor."
Musk's acquisition was also supported by Twitter founder Jack Dorsey.
On Thursday, Twitter shares rose more than 2% to $50.12, while Tesla shares fell 0.6% to $946.98 in premarket trading.
This article was translated by Marina Lammertyn.