BNB price stumbles after Binance invests $200 million in Forbes
- World’s largest cryptocurrency exchange Binance poured $200 million into Forbes, a leading media and publishing company.
- Forbes plans to use the funds to merge with a publicly traded special purpose acquisition company in Q1 2022.
- Back in 2020, Steve Forbes, chief editor of the company, said that Bitcoin could become the new gold.
- Binance coin price stumbled in response to news of Binance’s investment in Forbes.
The world’s largest exchange’s latest investment in media and publishing giant Forbes had a negative impact on Binance Coin price. Forbes would use the $200 million investment to merge with a SPAC.
Binance becomes one of the top two investors in Forbes
Binance announced its $200 million strategic investment in Forbes. The publishing giant plans on merging with a Special Purpose Acquisition Company (SPAC) before the end of Q1 2022.
Previously cryptocurrency firms have gone public, powered celebrity endorsements, affixed their name to sports arenas; however, this is the first media company purchase.
Binance has revealed plans to replace $200 million in commitments from institutional investors in Forbes by August 2022. Institutional investors chose not to be identified before the transaction was announced.
Historically, investors are skeptical of deals involving SPAC. However, with its latest investment, Binance is one of the top two biggest owners of Forbes. Once the merger with SPAC is complete, Forbes will be listed under the ticker FRBS on the New York Stock Exchange (NYSE).
Two directors out of nine on the board would be from Binance.
Analysts have evaluated the impact of Binance’s latest investment decision on native token Binance Coin’s price. Proponents expected news of Binance’s latest investment to fuel a bullish outlook among BNB investors.
The analyst from YouTube channel Wolf Lopez expect a strong uptrend in Binance Coin. The analyst has predicted a continuation of the Binance Coin uptrend, on track to $500.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
