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Binance Invest $500M to Support Musk’s Twitter Purchase

The exchange has committed to financially support the billionaire’s quest to purchase Twitter citing Musk has a ‘blank cheque.'

Binance Backs Musk's Twitter Move

Global cryptocurrency exchange Binance has confirmed its intention to invest $500 million in Twitter alongside Elon Musk as the Tesla billionaire seeks to obtain ownership of the social media platform. 

The crypto giant published a press release confirming the move on May 5th. The ongoing saga of Musk’s Twitter purchase has undergone another interesting twist as Binance is among a consortium of 17 investors that includes venture capital firm Sequoia Capital, Oracle co-founder and Tesla board member Larry Ellison and investment firm Fidelity. 

According to the Financial Times (FT), Musk has secured $7.14 billion of the $44 billion committed to the purchase. CEO Changpeng Zhao (CZ) posted on Twitter that the funds are a “small contribution to the cause”. The remainder of the funds will come through a combination of loans and equity. Other investors include Qatar’s sovereign wealth fund called the QIA and Saudi Prince Alwaleed Bin Talal bin Absulaziz al Saud, an existing Twitter investor. 

According to FT, in an article CZ retweeted, Binance's CEO said that the investment deal came together in a short period of time. FT cites CZ saying: 

“We, from our friends, heard that [Musk] was looking for third party investors, and are we interested? We immediately said that we are. He didn’t have a plan for Twitter. There isn’t, like, a business plan. So it wasn’t that type of discussion.” 

CZ is also quoted as saying that the contribution from Binance is “more of a blank cheque.” Could this mean some sort of branding partnership or perhaps Binance becomes the exchange of choice for Twitter? It will be interesting to see how a crypto exchange fits into this equation and what the return on investment will be.

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