Tesla’s Chief Executive Officer, Elon Musk, recently acquired a 9.2% stake in social networking giant Twitter for $2.9 billion. Based on the filling, Musk now owns 73,486,938 shares of Twitter. Shares of Twitter have surged as well as ee-based token Dogecoin.
The Twitter stocks are now held by Elon Musk Revocable Trust meaning that he is the only trustee of the fund. Usually, disclosure is required when there is an investment of more than 5% in a company. The purchase must be filed with the Securities and Exchange Commission (SEC).
Musk’s investment in Twitter is coming days after he criticized the social media giant, hinting that he is considering launching his own social media platform.
Dogecoin Seems To React Whenever Musk Makes A Move
While Twitter’s surge is connected to Musk’s purchase of the shares, Dogecoin’s rise is likely related to the fact that Musk is a staunch supporter of the crypto asset.
DOGE has a history of reacting and adjusting its price whenever its proponent Musk makes an important move whether it’s related to the crypto asset or not. The meme-based toke has also surged in value after Tesla’s investment in Twitter was made known to the public. Tesla started accepting Dogecoin for some of its merchandise.
Musk confirmed that it holds DOGE, Ethereum, and Bitcoin as assets and as part of Tesla’s balance sheet. However, Dogecoin has been known to rally shortly after a notable event involving its major proponents. It loses its value after climbing up for a little while.
Based on data provided by CoinMarketCap, DOGE has increased by an impressive 217% following the news.
But despite the new hype and increased interest in the crypto asset, there is still uncertainty surrounding the growth and development of the token.
Apart from Tesla, Dogecoin is also accepted in several companies as a form of payment. Companies like GameStop, Nordstrom, and Petco are few that accept Dogecoin.
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