Binance invests $200 million in Forbes to increase consumer awareness of Bitcoin

Binance, the world's largest cryptocurrency exchange by trading volume, is making a strategic investment in the 104-year-old Forbes magazine to improve consumer understanding of cryptocurrencies and blockchain.

Forbes and Magnum Opus Acquisition Limited, a publicly traded special purpose acquisition company (SPAC), officially announced on Thursday a $200 million strategic investment from Binance.

Forbes previously announced that it plans to go public through a business combination with Magnum Opus in August 2021, with the transaction expected to close in the first quarter of 2022.

Binance’s strategic investment will be made through Binance’s Subscription Agreement, which represents a commitment of $200 million out of a $400 million Public Equity Private Investment (PIPE), announced alongside Forbes’ intent to list.

“As Binance assumes existing PIPE commitments, the total size of the PIPE will remain at $400 million, and Binance’s investment will be on substantially the same terms as existing PIPE investors,” the announcement read.

As part of the agreement, Binance’s chief communications officer, Patrick Hillmann, and Binance Labs head, Bill Chin, will join Forbes’ board of directors.

According to Forbes CEO Mike Federle, Binance’s investment will give the company access to “the experience, network, and resources of the world’s leading cryptocurrency exchange and one of the world’s most successful blockchain innovators.”

"Forbes strives to demystify the complexities and provide useful information on blockchain technology and all emerging digital assets," he noted.

Binance founder and CEO Changpeng Zhao emphasized the importance of supporting the crypto industry media as part of the company’s commitment to increasing consumer literacy and crypto adoption, saying:

"As Web3 and blockchain technologies evolve and the crypto market matures, we know media is an essential element in building broad consumer understanding and education. We look forward to supporting Forbes' digital initiatives as they evolve into a new Investment Insights Platform.”

A spokesperson for Binance told Cointelegraph that their investment in Forbes “will be the first of its kind in the media industry,” adding: “Web2 has had a profound impact on the media industry. We believe Web3 may Playing a role in the future of journalism and publishing."

So far, Binance has clearly succeeded in its mission of promoting knowledge about cryptocurrencies and Bitcoin. In April 2020, Binance acquired CoinMarketCap, the most popular cryptocurrency website with 187 million visits as of August 2021. In addition to providing market capitalization charts, the site also provides news, updates and current market leaders. The company then launched its own crypto education portal called CMC Alexandria in September 2020.