In a bold move reflecting growing institutional confidence in crypto-aligned ventures, messaging giant Telegram is reportedly raising at least $1.5 billion through a new bond offering. According to a report by The Wall Street Journal, the deal is attracting heavyweight investors including BlackRock, Citadel, and Mubadala. The offering comes with an enticing 9% yield and a 20% discount on potential Telegram IPO shares, making it the only formal route to early equity exposure in the fast-growing platform.
BlackRock Deepens Bet on Telegram
BlackRock, already one of Telegram’s bondholders and among the largest institutional holders of Bitcoin, is expected to deepen its stake in the new offering. Alongside existing backers like Abu Dhabi’s sovereign wealth fund Mubadala, U.S. hedge fund giant Citadel is reportedly joining the latest round. The bond will carry a five-year maturity and offer investors a 9% annual yield, an unusually high return for a tech company of Telegram’s scale, but a reflection of its high-risk, high-reward proposition.
The proceeds from the bond issuance are set to be used for buying back Telegram’s outstanding debt from its 2021 bond sale, which matures in March 2026. Telegram had originally raised funds in 2021 to support its operations following its legal battle with the U.S. SEC over its attempted ICO. This new bond sale indicates a strategic financial pivot, shifting from urgent survival to planned long-term growth.
IPO Hopes and Investor Incentives
Beyond the attractive yield, Telegram is offering bondholders a 20% discount on shares in its long-anticipated initial public offering. The IPO itself remains unconfirmed in terms of timeline, but the incentive mimics terms from previous rounds and significantly enhances the appeal of the current offering. According to Financial Times, this equity discount is seen as the only formal entry point for investors wanting early access to Telegram’s future stock.
With Telegram projecting $2 billion in revenue for 2025 and reporting over 15 million paying users, double the number from the previous year, the IPO chatter appears to be backed by impressive growth. These metrics reflect Telegram’s increasing commercial viability, as it transitions from a privacy-focused platform into a fintech-powered super app with premium services, payments, and AI integration.
Durov’s Legal Cloud and Dubai Return
Telegram CEO Pavel Durov added to the buzz with a cryptic post on X (formerly Twitter), stating, “I’ll be in Dubai the first week of June — good news ahead.” His visit to Dubai, if it proceeds, will be his second since French authorities placed him under bail conditions related to an ongoing investigation into Telegram’s handling of illegal content.
Durov was arrested in France in August 2024 and is currently restricted from international travel without court permission. His previous Dubai trip was authorised in March. While details of the investigation remain sparse, his legal challenges have so far not derailed Telegram’s ambitious business plans.
Toncoin Rallies as Sentiment Builds
The bond sale news sparked a notable market reaction, particularly for Toncoin, Telegram’s associated digital token. Toncoin surged by more than 6% to $3.15 following the news, with its market cap climbing to $7.92 billion. Although the token remains more than 60% below its 2024 all-time high, investor sentiment around Telegram’s financial activity continues to drive speculative interest.
Much of this optimism is also being driven by the recent $300 million deal between Telegram and xAI, Elon Musk’s artificial intelligence venture, to integrate the Grok AI chatbot into the messaging app. This partnership suggests Telegram is not only eyeing IPO ambitions but also looking to stake a claim in the AI space.
Strategic Implications
Telegram’s bond sale and its investor lineup signal a pivotal moment for the company. By bringing in some of the world’s largest asset managers and hedge funds, Telegram is positioning itself for both financial stability and a future stock market debut. The 9% yield provides near-term income for backers, while the IPO discount offers long-term upside. With its monetisation strategy gaining traction and new technological integrations on the horizon, Telegram appears poised to become more than just a messaging platform, it’s evolving into a full-fledged fintech and AI-powered ecosystem.
As Durov prepares to revisit Dubai and Telegram eyes further global expansion, institutional interest and market dynamics indicate that the platform is entering its next phase, not just as a messenger, but as a market force.
