The list of shareholders for the social media platform X has been revealed, showcasing numerous notable figures within the cryptocurrency industry.
Recently, X (formerly Twitter) disclosed its list of shareholders, uncovering the participation of various cryptocurrency firms that supported Elon Musk's $44 billion acquisition of the platform in 2022.
This shareholder list, made public following a court order, includes almost 100 organizations. Notable among them are Binance Capital Management, as well as prominent venture capital funds with investments in artificial intelligence (AI) and the cryptocurrency space, such as Andreessen Horowitz (a16z), ARK Venture, and 8VC.
a16z’s portfolio also encompasses investments in the Coinbase exchange and crypto bank Anchorage Digital, while ARK Invest has stakes in the stock and cryptocurrency trading platform Robinhood and AI developer Anthropic. AI-focused companies like PathAI and Cognition are part of 8VC’s investment portfolio. Additionally, the document identifies nearly 30 entities associated with Fidelity, a company with a subsidiary focused on digital assets.
While Binance was previously known to be an investor in X, the majority of other shareholders had not been disclosed until now.
The release of this shareholder list came as a result of a federal judge’s order, following a request from the nonprofit organization Reporters Committee for Freedom of the Press. The list is tied to a lawsuit from 2023.
Elon Musk acquired X in October 2022 for $44 billion, marking one of the largest tech acquisitions in history. To complete the deal, Musk secured $46.5 billion in equity and debt financing. Banks like Morgan Stanley and Bank of America Corp. provided margin loans of up to $13 billion to Musk, according to Reuters.
However, the acquisition did not proceed as smoothly as anticipated. The Wall Street Journal described it as the worst financial deal for banks since the 2008-2009 financial crisis. A major contributing factor is the $13 billion in "hung debt" that banks are struggling to offload without taking a financial hit.
Since 2022, X has been grappling with financial challenges as many major advertisers have cut back on spending on the platform, citing dissatisfaction with Elon Musk. The Tesla CEO has faced ongoing backlash for statements some have deemed anti-Semitic, racist, and counter to American core values.
According to the New York Times, prior to Musk's acquisition, nearly 90% of X's revenue came from advertising. Earlier this month, Musk initiated a lawsuit concerning claims that advertisers were boycotting X.
Source: https://analysis.unich.com/binance-and-a16z-unexpectedly-appeared-on-xs-shareholder-list/
