Binance pledges to co-invest $500 million to participate in Musk's acquisition of Twitter

Binance was one of 18 co-investors in Elon Musk’s acquisition of Twitter, along with firms such as Sequoia Capital Fund and Fidelity Management and Research Company.

Major cryptocurrency exchange Binance was involved in Elon Musk’s $44 billion acquisition of Twitter, according to data filed with the U.S. Securities and Exchange Commission.

On May 5, Musk filed an amended master acquisition statement announcing that Twitter had received new financing commitments totaling approximately $7.2 billion in connection with the merger agreement, subject to the conditions in the co-investor equity commitment letters.

According to the filing, Binance is one of 18 co-investors in the acquisition, along with major cryptocurrency industry players such as Sequoia Capital Fund and Fidelity Management and Research Company.

Binance invested $500 million, making it the fourth-largest contributor after the Lawrence J. Ellison Revocable Trust, which invested $1 billion. Sequoia Capital and VyCapital donated $800 million and $700 million, respectively.

After the document was made public, Binance CEO Changpeng Zhao later tweeted that Binance’s investment was “a small contribution to the cause.”

Each listed equity investor named in the filing has committed to make contributions on or before the closing of the acquisition. “The equity investor retains the option to use shares of common stock held by such equity investor to satisfy such equity investor’s equity commitment, valued at $54.20 per share,” the filing reads.

Musk, the billionaire CEO and founder of Tesla, officially announced the acquisition of Twitter on April 25, in a $44 billion deal that is expected to close in 2022, subject to approval by Twitter shareholders and regulators. He has previously said that one of his top priorities for Twitter will be to remove “spam and scam bots and armies of bots,” including those related to crypto.

As Cointelegraph previously reported, Musk had pushed Binance to fix some issues on its platform last year, sparking a small Twitter battle with Binance CEO. Musk specifically mentioned an issue related to stuck withdrawals of Dogecoin (DOGE) on Binance, asking Zhao Changpeng to explain the issue.