Telegram Raises $1.5B in Bonds
Telegram Secures $1.5 Billion in Bond Sale
Telegram, the widely used messaging platform, successfully raised $1.5 billion in a new bond offering. This significant fundraising round, reported by the Wall Street Journal, involved both new investors like Citadel and existing bondholders including BlackRock and Mubadala.
Key Details of the Bond Sale
- $1.5 billion raised through a bond issue.
- 5-year term with a 9% yield.
- Proceeds will primarily be used to repurchase Telegram's 2021 bonds, which mature in March 2026. $400 million of this earlier debt has already been bought back.
- Investors have the option to convert bonds into shares at a discount if Telegram pursues an IPO.
This successful bond sale indicates investor confidence in Telegram's financial outlook and user growth, despite ongoing legal challenges faced by its founder, Pavel Durov. Durov is facing preliminary charges in France for allegedly failing to cooperate with investigations into illegal activities on the platform. Despite this, Telegram recently reported a $540 million profit in 2024, a significant turnaround from a loss the previous year, according to the Financial Times.
Impact on Toncoin (TON)
The news of the bond sale positively impacted Toncoin (TON), the cryptocurrency associated with Telegram's TON blockchain. Following the announcement, TON experienced a 6% increase, reaching nearly $3.2. This highlights the close correlation between Telegram's financial performance and the value of its associated cryptocurrency.
Telegram's Growth and Future Plans
Telegram's revenue in 2024 soared to $1.4 billion, driven by premium subscriptions, advertising, and partnerships related to the TON blockchain ecosystem. The company's continued growth and strategic investments underscore its position in the messaging app market. Further strengthening its position in the payments space, the TON Foundation recently appointed a former Visa executive to lead its global payments strategy.
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