Sunday, September 25, 2022

Elon Musk Joins Twitter Board After Acquiring a 9.2% Stake

Tesla’s boss, Elon Musk, according to a March 14 filing lodged with the US Securities and Exchange Commission (SEC) has purchased a 9.2% stake in Twitter, an acquisition that now places him as the highest shareholder of the social media platform. In succeeding news, the acquisition has stirred Musk’s appointment to Twitter’s board of directors.

The richest man in the world whose passive stake is estimated at $2.9 billion as of Friday’s close of stock, has over four times the shares of Jack Dorsey, the platform’s co-founder, and former CEO. Jack holds a little over 2% shares of the platform. The stocks acquired by the Tesla boss are held in his Revocable Trust (making him the lone trustee).

Twitter’s stock rose by more than 26% in the pre-market trade just before Wall Street resumed operations on Monday, making Musk earn $1.2 billion in interest in three weeks bringing the value of his share now to $3.6 billion. He is worth around $273 billion.

Musk’s passive stake in Twitter makes him a long-term investor hoping to minimize his trading of shares which most times is followed by extra fees and is somewhat volatile. Passive investment is an avenue to gradually build wealth as opposed to frequent trading.

The appointment of the billionaire to the Twitter board was announced by the CEO, Parag Agrawal in a tweet. He believes Musk is a great addition to make the Twitter team stronger, as Parag describes him as an intense critic and a passionate believer.

Elon Musk’s influence on cryptocurrencies

Whatever, the vocal Tesla boss with over 80 million followers does on Twitter wields such a huge impact on the broader crypto market. Whether he is changing his profile picture, tweeting, or including #Bitcoin” to his bio. As a result, the crypto sphere awaits what his investment in Twitter holds for the ecosystem.

After the announcement of Musk’s move to acquire stakes in Twitter, the meme-inspired Dogecoin (DOGE) rose to $0.15 per token continuing its growth from the weekend. 

Although the billionaire is yet to reveal details as to his involvement in Twitter, there are speculations Twitter could include Dogecoin as one of its payment methods riding on Musk’s influence. He is a huge supporter of the meme-coin and its community.

Musk is a regular user of Twitter, although his tweets have been controversial and sometimes gotten him into trouble. He has been accused of manipulating the stock market by sharing information about his companies in his tweets. How this Twitter shares acquisition will change his approach remains a mystery that the entire tech world is waiting to be unraveled.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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