🔑 Register an account with Gate.io
👨💼 Complete KYC within 24 hours
🎁 Claim Points Rewards
All Devices
Exit all terminal accounts APP/PC/WAP
This Device
Exit the current web account
Gate Blog
Your Gateway to crypto news and insights
How Elon Musk’s Offer To Buy Twitter May Affect Crypto Market.
11 May 15:47
Twitter is a novel social media platform that gives you direct reach and touches with celebrities and high-profile individuals.
In April 2022, Elon Musk became the largest shareholder in Twitter when he bought 9.1% of its shares.
Twitter offered him a board member seat and the offer of owning up to 15% of the shares.
Elon Musk wanted more, and he wanted to be a major stakeholder and eventually made his bid to buy the entire shares.
Past events showed that Elon Musk and his brands, such as Tesla, continue to be a direct determinant of the crypto market.
Should he acquire Twitter, his influence will direct the policies and activities of Twitter towards influencing the crypto market.
With a Bid of $43 billion, experts opine that Elon might eventually succeed in acquiring Twitter, which will positively influence the crypto market.
Twitter is one of the most valuable social media networks today. Even though it has over 200 million daily users, the social network is not the one with the highest patronage or subscribers.
However, it has a direct reach to VIPs, celebrities, Government officials, politicians, movers, and shakers of the society.
This reason and some others (that will be discussed subsequently) prompted Elon Musk, the CEO of Tesla, Space X and the Richest Man in the World, to purchase more shares on Twitter.
At this juncture, let's identify the events surrounding Elon Musk’s bid for the takeover of Twitter.
Events Surrounding Elon Musk's Bid For Twitter's Full Ownership
Image: 21st Century Chronicle
On April 4, 2022, Elon Musk revealed that he purchased 9.1% of Twitter, and this shareholding makes him the largest shareholder on Twitter.
By becoming the largest shareholder, Twitter offered him a board seat, and should he accept the offer, he will own just 15% of the company. This offer was regarded as a Poison Pill.
Elon Musk accepted the offer immediately it was thrown at him. He eventually rescinded his decision and approached the Security and Exchange Commission (SEC).
He wanted the Security and Exchange Commission (SEC) to change the condition from a passive holder to being a shareholder. Experts suggest that he was looking for an active role and something more impactful.
While all these events were unfolding, those who are long observant of Elon Musk and are conversant with his dealings already believed that he might likely make a bid for the outright purchase of Twitter.
Elon Musk eventually announced that he was willing to buy 100% of Twitter.
He said, “... I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced….”
Elon Musk described this offer as the “best and final” offer.
How Elon Musk Has Impacted The Crypto Market In The Past
Image: Medium
In 2021, Elon Musk announced that Tesla, his automobile brand, would start making transactions and selling vehicles in exchange for a cryptocurrency (majorly Bitcoin). Shortly after, Tesla acquired Crypto assets worth about $2 billion.
These two events made the price of cryptocurrency increase exponentially.
Barely three months after, Tesla management had to succumb to the yearnings of Shareholders and decided to jettison energy-intensive crypto-assets for less consuming tokens. Tesla suspended transactions in Bitcoin and made a case for DogeCoin.
The market cap of Bitcoin fell by 8% after the announcement. The value of Doge, however, increased exponentially.
The events highlighted above indicate that Elon Musk is a strong determinant of every market he ventures into.
How The Offer To Buy Twitter Might Affect The Crypto Market
Image: MSNBC.com
Experts believe that Elon is still interested in becoming a significant stakeholder in cryptocurrency, especially Bitcoin.
Since he could not actualize his goal by using Tesla to acquire and transact in BTC, he might be able to actualize his plan if he becomes the sole owner of Twitter.
Experts predict the plan to follow the pattern below;
Twitter has over 200 million daily users, and it is one of the most viable social networks that transcend the globe.
We have seen issues that started on Twitter, eventually spreading worldwide and getting the attention of world leaders. Twitter's reach is incomparable to other social network platforms.
Should Elon Musk get full ownership of such a platform, he will most likely amplify his desire for Cryptocurrency.
When a platform like Twitter fully supports the purchase, holding, and transactions using cryptocurrency, that positively impacts the Crypto market.
In addition, the rise and fall of the crypto market are determined by speculations, buzz, and some significant stakeholders. One of those stakeholders is Elon Musk, and another platform where speculation and buzz can affect the crypto market is Twitter.
Should Elon succeed in buying Twitter and get Twitter users to keep tweeting about Bitcoin or other tokens, the price value will continue to soar higher.
Finally, the amount that Elon Musk is willing to buy Twitter will affect the crypto market and the entire market. Twitter’s market cap is around $37 billion, and Elon is ready to buy it for about $43 billion.
Experts consider that offer a “pretty fair premium.” With this open bid announcement by Elon, the shares of Twitter have increased by 6%.
Conclusion
Every market, whether online or offline, has movers and shakers. These people or entities can directly or indirectly determine the market's direction.
The determinants have no limit for the decentralised crypto market with no regulation. One of those determinants in the crypto market is Elon Musk.
Past happenings and events have shown that Elon Musk and his conglomerates have the power to determine whether the crypto market will increase or dip even though his reign in the crypto market was short-lived by Tesla stakeholders against energy-consuming blockchain assets.
Experts believe with his interest in 100% ownership of Twitter and the amount of dominance that Twitter has across the globe, Elon Musk will bounce back to become a formidable stakeholder in the crypto market.
This will have a positive effect on the crypto market. Elon Musk will actively support blockchain technology and direct the policies of Twitter toward advocating for cryptocurrencies.
Author: Gate.io Researcher Valentine A.
This article represents only the researcher's views and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
BTC/USDT
+ 1.02%
ETH/USDT
+ 0.30%
GT/USDT
+ 0.82%
Unbox Your Luck and Get a $6666 Prize
Register Now
Claim 20 Points now
New User Exclusive: complete 2 steps to claim Points immediately!
Claim now
