Binance and Sequoia fund Elon Musk's Twitter acquisition

Binance and Sequoia fund Elon Musk's Twitter acquisition

The companies are among the many that have financially supported the billionaire's acquisition of Twitter.

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.