It seems that Elon Musk’s and Dogecoin’s (DOGE) fates are linked… As the Tesla CEO announced the acquisition of 9.2% of Twitter’s shares, the price of the meme-based cryptocurrency climbed more than 9% in the space of 2 hours.
Elon Musk buys nearly 10% stake in Twitter
The news came out on Monday, April 4. The Tesla CEO filed a document with the Security and Exchange Commission (SEC) detailing the acquisition of 73,486,938 shares of Twitter (ticker: TWTR). This represents exactly 9.2% of the social networking company’s shares, making Elon Musk the largest shareholder.
Listed on the New York Stock Exchange (NYSE), Twitter shares were trading at around $39.31 per share at the close of trading on Friday 1 April. At this price, it values Elon Musk’s purchase at over $2.8 billion.
The share price had already appreciated the news before the markets opened and continued its bullish rally on Monday, already printing a whopping 29.3% gain by mid-session.
Twitter’s share price rises 29% following the announcement
At the same time, even when he’s not talking about it, Elon Musk manages to influence the price of Dogecoin (DOGE). With no direct connection to the announcement, the Tesla CEO’s favorite cryptocurrency benefited from the announcement to print a 9% increase in a few hours, reaching the price of $0.153.
Elon Musk guided by Twitter poll
For more than a year now, Elon Musk has been expressing his concerns about the social network on Twitter. First, he published a poll in which his community approved by 82.7% that Twitter should be open-source. In a second step, the Twitter CEO published a new poll:
The consequences of this poll will be important. Please vote carefully.
– Elon Musk (@elonmusk) March 25, 2022
In short, Elon Musk polled his community on whether “free speech is essential to a functioning democracy” before asking the question “do you think Twitter adheres strictly to this principle?
On the other hand, the last tweet could have been a red flag. The billionaire entrepreneur leaves a cryptic note: “The consequences of this election will be significant. Please vote carefully”. A tweet that makes sense with today’s announcement.
This acquisition by Elon Musk comes at a time when the social network is exploring various solutions for decentralisation and expansion in Web 3.0. In November 2021, having already integrated more and more blockchain-related technologies, Twitter founded a team dedicated to researching ways to decentralise its platform.
All in all, Twitter, Elon Musk and crypto-currencies: a trio that should make sparks fly in the months to come
