On Tuesday, the meme coin surged more than 8% due to news that a billionaire was willing to buy Twitter for $54.20 per share. Dogecoin rose by more than 8% Tuesday after news broke that Elon Musk might finally agree to purchase Twitter under the original terms.
Musk’s lawyers sent a late last night letter to Twitter proposing to purchase the social media company at his original price of $54.20 per share. According to coinGecko, DOGE jumped 8.1% within minutes of the news being published, reaching $0.0648 as of writing.
Musk and Dogecoin have a long and deep-rooted history.
The world’s richest man has been promoting the meme coin for years in a series of playful tweets. Although he initially claimed they were ironic, they later appeared to indicate a genuine working relationship between the cryptocurrency’s developers.
Musk’s jokes about DOGE sent its price skyrocketing. DOGE reached an all-time high $0.72 in anticipation of Musk hosting “Saturday Night Live” on May 20, 2021. In the following year, the coin fell to over 90%.
For months, the drama surrounding Tesla and SpaceX CEOs’ bid to purchase Twitter has been a mess of plot twists and turns. In April, Musk proposed buying the social media giant. Twitter’s board rejected the proposal and invoked a poison pill to stop a hostile takeover. The board rejected Musk’s offer to buy the social media giant in April, but accepted it within weeks.
The Musk backtracked a few weeks later, allegedly because spam bots made up more of Twitter’s users than the company initially claimed. He tried to cancel the deal, despite Twitter’s insistence that it should proceed as planned. Musk was contractually bound to fulfill it.
Although it’s not clear what caused Musk to change his mind months later, Twitter stock surged nearly 13% to $47.93 as of writing.
If the deal is completed, it could be a huge boon to Dogecoin. Musk suggested that he could see adding DOGE to the payment method for Twitter, days after he first proposed to purchase it in April.