Elon Musk has just announced that he holds a 9.2% stake in Twitter (TWTR). He thus became the largest shareholder of the micro-blogging website founded by Jack Dorsey.
The two billionaires appreciate each other and do not hide it. They often do not hesitate to attack the elite of Silicon Valley, playing with pleasure the roles of outsiders. Twenty-four hours after the surprise announcement of Musk's arrival in the capital of Twitter, the platform announced that the richest man in the world would also join the board of directors.
The move has intensified questions about Musk's intentions. What exactly does he want to do? What are the intentions? How does he intend to change and transform Twitter under pressure to increase revenue, expand and grow its audience?
Full of uncertainty surrounds Musk's bet even if investors seem convinced for the moment that there are positive changes in sight for the social media. Twitter had one of its best session on Wall Street on Monday, adding $10 billion in market cap.
Musk Cares
Dorsey seems to want to reassure and remove doubts.
"I’m really happy Elon is joining the Twitter board!" Dorsey, who now runs Block (SQ), posted on his Twitter account. "He cares deeply about our world and Twitter’s role in it."
He then tried to reassure those who wonder about the future relationship between his successor and Musk.
"Parag and Elon both lead with their hearts, and they will be an incredible team," Dorsey said, referring to Twitter CEO Parag Agrawal, who succeeded him in November.
Dorsey's statement followed a post by Parag Agrawal announcing Musk's arrival on Twitter's board.
"I’m excited to share that we’re appointing @elonmusk to our board!" Agrawal posted. "Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board."
It's noteworthy to mention that Musk notably posted on Twitter a meme showing Agrawal in the clothes of the Russian dictator Joseph Stalin and Dorsey as Nikolai Yezhov, the former head of the Soviet secret police.
Musk also criticized Agrawal's early orientations.
Musk strongly criticized Twitter's strategic shift toward nonfungible tokens. The company announced in January that it plans to offer NFT holders special profile pictures. Twitter displays NFT profile pictures in a special hexagonal shape as long as a user connects their crypto wallet to their social-media profile.
"This is annoying," Musk commented on Jan. 21. "Twitter is spending engineering resources on this bs while crypto scammers are throwing a spambot block party in every thread!?"
Musk and Dorsey Are Bitcoin Evangelists
Generally speaking, Musk seemed unhappy to see Dorsey leave Twitter last November. Dorsey was one of the few CEOs to back Musk amid strained relations with the Securities and Exchange Commission.
"Ok, then WHO is the most exciting influential on Twitter right now? BE SPECIFIC," journalist Kara Swisher asked Dorsey on February 2019.
"To me personally? I like how @elonmusk uses Twitter," Dorsey answered. "He’s focused on solving existential problems and sharing his thinking openly. I respect that a lot, and all the ups and downs that come with it #karajack."
"Thanks Jack, Twitter rocks! 🤡😎🌪💩🔥🥜💨🍃💫🚀🥰," Musk commented.
In 2020 when activist investor Paul Singer of Elliot Management demanded changes from Twitter, thus weakening Dorsey, Musk did not hesitate to show his support for his billionaire friend.
"Just want say that I support @Jack as Twitter CEO," Musk posted on Twitter on March 2020. "He has a good ❤️."
The two billionaires also have in common their belief in the revolution promised by cryptocurrencies and in this case bitcoin. Their companies are among the few to hold bitcoin on their balance sheets.
Tesla holds 43,200 bitcoin worth $1.989 billion according to Bitcoin Treasuries as of time of writing, while Block, formerly known as Square, holds 8,027 bitcoin worth $369.60 million.
