Funds like Sequoia capital, Fidelity Management, and crypto exchange Binance have funded Elon’s hostile takeover of Twitter. As per Elon’s filing with the SEC for Twitter’s acquisition, the Tesla and SpaceX CEO has received funding from 18 companies.
Pro-crypto funds like Sequoia Capital Fund have offered to fund $800 million, Fidelity management has committed over $300 million, and AH Capital Management ( Andreessen Horowitz, a16z) has also offered $400 million for the microblogging sites’ acquisition.
Cryptocurrency exchange Binance has also committed $500 million to fund the deal. Till now, Elon has secured $2.16 billion out of the total $7.139 billion in new financing commitments, with 14 other companies (except Sequoia, AH, Fidelity and Binance) backing the rest.
On May 4, Musk received equity commitment letters from these investors, which summed up to $7.139 billion.
There are now several strong green flags about crypto being integrated wholly into Twitter. Crypto money has, directly and indirectly, supported the microblogging sites’ acquisition; it could mean many things. For example, Elon recently announced that Twitter could be a paid service for government officials and businesses. The announcement and the filings could only hint at Twitter’s new direction in terms of crypto, apart from Elon’s goal to make it a site with minimum freedom of speech restrictions.
Binance CEO Changpeng Zhao (CZ) had to say this—
We’re excited to be able to help Elon realize a new vision for Twitter … We hope to be able to play a role in bringing social media and web3 together and broadening the use and adoption of crypto and blockchain technology.
A crypto VC firm, Sequoia Capital, is a dedicated $600 million cryptocurrency-focused fund. It started in February and partnered with key players like ex-Twitter CEO Jack Dorsey and CEO Sam Bankman-Fried. Fidelity is also known for its pro-bitcoin investment strategy. The fund has also publicly said that cryptocurrencies are “a superior form of money.”