Binance has been confirmed as one of the investors that helped Elon Musk secure his deal to buy Twitter TWTR. The deal, which just closed, is worth $44 billion. Of that, Binance contributed $500 million, according to CEO Changpeng Zhao.
Zhao, who goes by CZ, confirmed the investment on Twitter.
The investment was first mentioned in May following an amended 13D filing, which showed that the cryptocurrency brokerage had given Musk an equity commitment letter for $500 million.
In response, CZ tweeted, "a small contribution to the cause."
"We're excited to be able to help Elon realize a new vision for Twitter. We aim to play a role in bringing social media and Web3 together in order to broaden the use and adoption of crypto and blockchain technology," CZ said in a statement to TheStreet.
And Patrick Hillman, Binance's Chief Startegy Officer, said, "“People have overestimated the current bear market’s potential to impede widespread adoption of crypto. There is no bear or bull market for web3, the tech that underlies crypto."
But could there be more to the $500 million investment? Ross Mac, host of Maconomics, believes so.
"What should you make of this? Sure maybe it's just an investment…or maybe there is some synergy. If you remember, Elon and his brother had their text messages released where they talked about a blockchain-based social media platform that would be "like Twitter." Musk's brother even called the idea the "doge social media" in the texts later on. This is no coincidence because Elon has previously tweeted that Twitter should have a subscription model that users can pay with Dogecoin," Mac said.