Twitter stock rallied as much as 3 percent after executives reiterated that spam bots represent fewer than 5 percent of users.
They added that the actual number of fake accounts is likely below what is disclosed in its filings with the Securities and Exchange Commission (SEC).
Twitter executives also revealed that it suspends more than one million spam accounts daily, doubling the previous number shared by CEO Parag Agrawal in May.
Company shares rallied as much as 3.4 percent on the news, hitting $39.51 before paring their gains. The stock has tumbled nearly 9 percent year-to-date and erased its post-Elon Musk rally.
Should Musk's purchase of Twitter go through, shareholders would receive $54.20 per share. But why is there such an enormous gap with the stock trading below $50?
Despite the Board of Directors approving Musk’s proposal, there is some consternation among investors that he will not follow through on his takeover bid. There is a belief that he will either renegotiate the $44 billion figure or choose to pay the $1 billion termination fee over concerns surrounding the prevalence of spam bots.
Musk's tweets have put the arrangement in doubt many times as he attempts to verify the total number of bogus accounts himself. He ostensibly does not believe the company’s touted 5 percent figure.
Twitter has repeatedly stated that the number of spam bots activated on the social media outlet accounts for less than 5 percent of its total user base. However, Musk, who proposed a $44 billion takeover of the tech firm, has routinely questioned the accuracy of this estimate. Musk has threatened to walk away from the deal until he receives confirmation of Twitter's bot percentage.
After multiple requests for an audit of users, Twitter provided Musk with access to the corporation's so-called firehose of public tweets. At the same time, it does not think outside calculations would be accurate or even successfully performed because they would not possess private account data.
The company is not sharing internal data with external parties over privacy concerns.
Musk continues to be critical of Twitter's operations.
He was asked by a Twitter user if he knew that author and psychologist Jordan Peterson had been suspended from Twitter over his Twitter post about actor Elliot Page.
Market analysts note that one of the main subjects during Sun Valley will be Musk's Twitter acquisition. If Musk does speak from the podium, it would be a departure from the norm since the closing speech is typically made by billionaire CEO Warren Buffett.