Dogecoin Is Beating Bitcoin as Elon Musk Purchases Twitter for $44 Billion
On Monday, Twitter declared that Elon Musk has formally nonheritable the social media platform for $54.20 per share in an exceedingly dealings valued at $44 billion. When the transaction completes, Twitter can transition to a private company.
Tesla's Elon Musk officially acquired Twitter on April 25, 2022, in a deal worth $44 billion. The deal came 21 days after Musk acquired a 9.2% stake in Twitter Inc. on April 4. $54.The 20 per share will give shareholders a 38% premium over the closing price of Twitter stock on April 1. It was Twitter's last day of trading before Musk's offer to buy the social media company.
Elon Musk also released a statement when announcing the acquisition on Monday and stressed that freedom of speech was needed at the company. “Free speech is the foundation of a functioning democracy and Twitter is the place in the digital city where issues vital to the future of humanity are discussed,” Musk explained.
Meanwhile, the price of dogecoin (DOGE) is up over 20% since news of a deal surfaced on Monday morning. Some investors believe Musk's fondness for DOGE means he could play a bigger role in Twitter payments if he owned the company.
Dogecoin has long been a favorite token of Musk, who has been a strong advocate for digital assets; said last month that it would not sell its dogecoin and would also continue to hold bitcoin and ether.
The rise of dogecoin, which is a so-called memecoin - so named because it's mostly based on an internet joke rather than a major blockchain project - has become the 10th largest cryptocurrency by market capitalization fueled by Musk.
Earlier this year, Tesla began accepting dogecoins for purchases of goods on its website. Dogecoin owners might hope that a Musk-led Twitter would see more or less the same thing: a use case of the token. Late last year, Twitter unveiled a rollover feature, allowing users to send Bitcoins to creators.
Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, said news of the deal on Twitter "led speculators to buy dogecoin due to Elon's obsession with cryptocurrency, and therefore potential for dogecoin to receive greater utility on one of the largest social media networks if Elon is successful.