Changpeng Zhao, commonly known as “CZ”, the chief executive of Binance has revealed how their exchange reportedly backed Elon Musk.
CZ stated that they had made a commitment with Elon Musk that they would back him up with a $500 million amount. The backing would be provided for the acquisition of Twitter.
Elon Musk Acquired Twitter
It was on October 27 when Twitter was reportedly acquired by Elon Musk and from the looks of it, he had been backed by Binance.
The exchange’s CEO has now confirmed that Binance had backed him up with a $500 million deal. Right after the acquisition, Elon Musk fired several Twitter executives that include Parag Agrawal, former CEO.
Binance Hinted Support for Musk in May
It was in May of 2022 when Binance hinted that it was planning to provide financial backing to an acquisition deal.
However, it has been revealed that Binance was referring to Elon Musk with a support fund of $500 million. Back in May, Binance was not the only entity that hinted that it would co-invest in Twitter.
Other platforms such as Research Company, Fidelity Management, and Sequoia Capital Fund have all invested in Binance.
Finally, after several months had passed, Binance confirmed on October 28 that it has backed up Elon Musk so he could finalize the deal with Twitter.
CZ has confirmed that they had wired the funds to Elon Musk at the beginning of the running week so the deal could be finalized.
Binance has a Huge Stake in Twitter Now
CZ stated that he was not sure whether the exchange would perform the transfer in the form of a bank wire transfer or send $500 million worth of crypto.
However, he later came to know that the money was transferred via a bank wire.
He was glad that they made a huge investment in Twitter at the right time. By making a huge $500 million investment, they have become the fourth largest contributor who helped Musk execute the takeover.
The biggest contributor to Elon Musk and in the latest takeover is The Lawrence J. Ellison Revocable Trust. The firm has invested $1 billion to support Elon Musk accomplish his goal.
It is to be confirmed exactly how Binance is to benefit from the deal and what benefits other than a stake it is looking forward to in Twitter.
Since CZ’s announcement, multiple cryptos and non-crypto media sources have tried approaching Binance for their comments on detailed benefits. However, Binance is yet to respond to such requests.
There are speculations that Binance may be involved in Twitter’s payments integrations. Elon Musk may adopt the BNB Chain to process transactions and the BNB Coin may benefit from this tremendously as well.