Telegram, the privacy-focused messaging platform, has launched a massive $1.5 billion bond issuance to reshape its financial future. The firm aims to use the fund to refinance its 2021 debt, with the hope of regaining investor confidence. This move highlights Telegram’s ambition to stabilize its finances while eyeing future growth opportunities.
What the Bond is Used For
Telegram’s $1.5 billion bond sale, launched today, attracted top-tier institutional investors. BlackRock, a global leader in asset management, and Mubadala, Abu Dhabi’s sovereign wealth fund, are joined by Citadel, a U.S.-based hedge fund. The five-year bonds carry a 9% yield, offering a 20% discount on equity conversion if Telegram pursues an initial public offering (IPO).
Proceeds will primarily be used to repay $1.72 billion in 2021 bonds, with $400 million already repurchased, which are due in March 2026. This strategic refinancing strengthens Telegram’s financial position while maintaining investor appeal through potential equity upside.
Telegram Forges Ahead with New Ventures
Telegram has a long-standing history of venturing into cryptocurrency. The TON blockchain raised $1.7 billion, but was halted by U.S. regulators in 2019. Founder Pavel Durov faced legal scrutiny, including a 2024 arrest in France, which impacted bond yields, reaching a high of 17%. Despite these challenges, Telegram reported a profit of $540 million in 2024, driven by premium subscriptions and TON partnerships.
Other firms have used this strategy for the same reason. For example, BlackRock, with its $2.5 billion BUIDL fund, and DAMAC, with its $1 billion real estate tokenization, also use bond sales to offset debts. These examples reflect a growing trend of blending traditional finance with blockchain to manage liabilities.
Meanwhile, Telegram has entered a one-year partnership with xAI to integrate and distribute Grok AI to its over one billion users. As part of the deal, Telegram will receive $300 million in cash and equity from xAI, along with 50% of revenue from xAI subscriptions sold via Telegram. This was announced by Telegram CEO Pavel Durov today.
As part of this lucrative agreement, Telegram will receive a substantial financial boost, including an infusion of $300 million, which will be divided between cash and equity from xAI. In addition to this upfront investment, Telegram will also benefit from a significant revenue-sharing model, securing 50% of the proceeds from xAI subscription sales that occur through its messaging platform.
