Binance, the world’s largest cryptocurrency exchange in terms of trading volume, will now form an alliance with Elon Musk in his latest investment – Twitter. Binance has plans to invest $500 million in Twitter alongside Elon Musk who put forward a bid of $44 billion to buy Twitter.
The CEO of Binance, Changpeng Zhao, believes that by joining hands with Twitter, they would be able to tap the potential of Web 3.0 and Decentralization. Following this, he even tweeted “Crypto Twitter”, which may be an indication to something interesting on the social media platform.
What is Schedule 13 D?
When any investors buys a large number of shares to takeover or merge a publicly-held company, he must file the change via a form in Schedule 13 D with the U.S. Securities and Exchange Commission (SEC). The large number of shares refer to acquisition of more than 5% of a company’s equity shares.
“Beneficial ownership report” is the other popular name for schedule 13D.
After Elon Musk bought Twitter for $ 44 billions, therefore it was mandatory to file the amendment in schedule 13D within 10 days.
Schedule 13D aims to provide transparency to the public regarding the changes in the shareholding of a company. It also takes note of the source of funds and other considerations.
According to latest amendment no. 6 to schedule13D filed to US Securities and Exchange Commission, under the Securities Exchange Act of 1934, there are almost 18 companies who are ready to back Elon Musk.
Though Binance has pledged a $500 million commitment towards Twitter, according to a report, there are other big guns who have shown even more interest. To name a few, Lawrence J. Ellison Revocable Trust has offered $1,000 million Venture Capital firm Sequoia has pledged $800 million, while VyCapital has supported with $700 million.
