Tesla CEO and Dogecoin proselyter Elon Musk has become the largest shareholder in the social media giant Twitter as per SEC filings. Musk is now the owner of 73,486,938 Twitter shares, which represents a 9.2% passive stake, in accordance with the Securities and Exchange Commission 13G filing released on 4th April.
But what is meant by the passive stake?
A passive stake is when investors were bidding shares higher on the anticipation that this could lead to something more.
Based on Twitter’s closing price on Friday, the stake is valued at $2.89 billion. The doge proponent, known for throwing unique teasers before a major event, went on a rant on Twitter’s failure to adhere to free speech, a few days ago. He then asked his 80 million followers “what should be done?”
As usual, Elon Musk’s tweet raked in more than 330k likes with one user even asking him to buy the platform and change the bird logo to a doge! which doesn’t sound far-fetched though since Musk is now likely to play a bigger role being the major stakeholder.
About a month ago, Musk also said he was planning to build a new social media platform. Following the news, Twitter shares have risen by more than 25% in the premarket. Wedbush analyst Dan Ives said Monday on CNBC’s “Squawk Box,” said,
“Elon Musk could try to take a more aggressive stance here on Twitter. This eventually could lead to some sort of buyout. This makes sense given what Musk has at least been talking about, at least from a social media perspective.”
Elon Musk’s Doge to the moon?
Musk recently posted a meme video on DOGE in response to a tweet about Bitcoin miners by Brett Winton, Director of Research at Ark Invest. For a better context, Winton has shared a joke featuring a brief conversation between someone who understands Bitcoin and mining and someone who does not know that “miners” are hardware.
Elon Musk responded by posting a video about Dogecoin, saying that it “explains everything”. The video showed a Shiba Inu dog [a DOGE symbol] riding a rocket which symbolizes the meme coin overtaking Bitcoin and other major cryptos by market cap.
Well, in fact, it did turn into reality, albeit for a short time. Doge tokens responded briefly by a 10% rise at $0.155, just minutes after the reports of Musk’s Stake began circulating. Since then, the asset has retraced slightly and is trading at $0.152, at press time.