X Secures $1 Billion in New Funding Amid Financial Challenges

Social media platform X, formerly known as Twitter, has raised $1 billion in new equity funding, bringing its valuation to approximately $32 billion. This figure remains significantly lower than the $44 billion Elon Musk paid for the company in 2022 but suggests that investors still see potential in the platform’s future.

According to Bloomberg, Musk himself contributed to the latest funding round, with some of the new capital expected to be used to reduce the company’s substantial debt. X has been grappling with financial struggles since Musk’s acquisition, largely due to the high-interest loans taken out for the purchase. Reports indicate that X carries an annual debt burden of $1.2 billion in interest payments, which has posed a major challenge to profitability.

Despite these financial hurdles, X has maintained around 250 million daily active users—indicating that its core audience has remained stable since Musk’s takeover. While the company’s revenue has declined significantly from its pre-acquisition levels (dropping from $5 billion in 2021 to an estimated $1.2 billion in 2024), drastic cost-cutting measures, including mass layoffs and office closures, have helped keep the platform operational.

While X’s long-term financial outlook remains uncertain, this latest funding injection provides some breathing room. Alongside that, some advertisers who initially distanced themselves from X after the takeover and short-notice changes to the platform have begun reconsidering their investment – although there has also been rumours that X has been pressuring advertisers to return under threat of legal consequences, rather than letting it happen naturally.