Wall Street banks on Wednesday sold billions of dollars in X debt holdings thanks to a surge in investor interest as the social network adds big advertisers and Elon Musk gains clout in Washington, according to a report.

Wall Street banks are getting ready to sell up to $3 billion of debt holdings in X, the social-media platform controlled by Elon Musk, two people with knowledge of the matter said on Friday. Morgan Stanley bankers have contacted investors ahead of a planned sale next week, the sources said.

Banks led by Morgan Stanley have sold $5.5 billion of some $13 billion of debt they lent to support Elon Musk's $44 billion acquisition of Twitter, now called X, in 2022, said a source with knowledge of the deal.

Banks including Morgan Stanley, Bank of America, and Barclays offered a deal to investors seeking minimum commitments in the hundreds of millions.