The memecoin gained more than 8% after it was revealed on Tuesday that the billionaire is willing to pay $54.20 per share for Twitter.
Dogecoin gained more than 8% on Tuesday after news broke that Elon Musk may finally agree to buy Twitter on the original terms.
According to Bloomberg, Musk's attorneys sent a letter to Twitter late last night proposing to buy the social media company for his original offer price of $54.20 per share. DOGE jumped 8.1% to $0.0648 within minutes of the news breaking, according to CoinGecko.
Dogecoin and Musk have a long and complicated relationship. For years, the world's richest man has promoted memecoin in a series of playful tweets that he initially claimed were ironic but later revealed to be evidence of a genuine working relationship with the cryptocurrency's developers.
Musk's tweets about DOGE, whether joking or serious, sent the token's price skyrocketing; when Musk hosted "Saturday Night Live" in May 2021, the anticipation of the event sent DOGE soaring to an all-time high of $0.72. In the year that followed, the coin dropped by more than 90%.
Meanwhile, Elon Musk's bid to buy Twitter has been mired in drama and plot twists for months. When Musk first proposed buying the social media behemoth in April, Twitter's board of directors objected, invoking a so-called poison pill to prevent a hostile takeover of the company. Within weeks, however, the board accepted Musk's $44 billion buyout offer, which was apparently too good to pass up.
Musk later retracted his statement, allegedly in response to claims that spam bots made up a larger portion of Twitter's user base than the company had previously disclosed. In July, he attempted to cancel the deal, despite Twitter's insistence that it proceed as planned and that Musk was contractually obligated to fulfill it.
It's unclear what prompted Musk's apparent change of heart months later, but Twitter's stock rose nearly 13% today, to $47.93 at the time of writing, on news that he may finally be willing to close the deal.
If the deal goes through, it could be a huge boost for Dogecoin. Musk hinted in April, just days after proposing to buy Twitter, that he could see DOGE being added as a payment method on the social media platform.