Looks like the fates of Elon Musk and Dogecoin (DOGE) are linked… As the Tesla CEO announced the acquisition of a 9.2% stake in Twitter, 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 information came out during the day on Monday, April 4. The Tesla CEO filed with the Security and Exchange Commission (SEC) a document explaining the acquisition of 73,486,938 shares of Twitter (ticker: TWTR). This represents exactly 9.2% of the social network company’s shares, making Elon Musk the largest shareholder.
Listed on the New York Stock Exchange (NYSE), Twitter shares were trading at about $39.31 a share at the close of trading on Friday, April 1. At that price, that values Elon Musk’s purchase at more than $2.8 billion.
The share price had already appreciated the news before the markets opened and continued its bullish rally into Monday, already printing a whopping 29.3% gain by mid-session.
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 a poll taken on Twitter?
For more than a year now, Elon Musk has been expressing his concerns on Twitter about the same social network. First, he published a poll in which his community approved at 82.7% the fact that Twitter should be open-source. In a second step, the CEO of Twitter published a new poll:
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 rigorously adheres to this principle?”
On the other hand, the last tweet could have been a red flag. Indeed, the billionaire-entrepreneur leaves an enigmatic: “The consequences of this vote will be important. 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 decentralization and expansion in the web 3.0. In November 2021, after already integrating more and more blockchain-related technologies, Twitter founded a team dedicated to researching ways to decentralize its platform.
In short, Twitter, Elon Musk and cryptocurrencies: a trio that should make sparks fly in the coming months.
