Telegram, a messaging platform, raised $1.7 billion from investors in a recent bond offering featuring a 9% coupon that closed on May 28.
According to Bloomberg, the company will use a portion of the proceeds to pay $955 million in debt from a previous bond issue set to mature in 2026. The remaining $745 million is fresh capital for growth and operational costs.
Telegram co-founder Pavel Durov wrote in a Telegram post:
“The response from investors was phenomenal. We are deeply grateful to the investment funds that have supported us over the years. Due to strong demand, we expanded the offering beyond the initial $1.5 billion — yet demand still far exceeded what we could allocate.”
Telegram continues to attract investor attention as the crypto-friendly messaging company expands its global reach and features. The platform is widely used in the crypto community and is seen as a vehicle to facilitate mainstream adoption.
Investors participating in the sale, which included asset manager BlackRock and Abu Dhabi investment firm Mubadala, have the option to purchase shares of Telegram in a potential future initial public offering (IPO) at a 20% discount.
Related: Telegram shuts ‘largest darknet marketplace to have ever existed’
Telegram’s tentative deal with Musk’s xAI
The bond sale follows several recent developments from Telegram, including a deal between the messaging company and Elon Musk’s xAI, the artificial intelligence firm behind Grok.
Telegram and xAI reportedly agreed to give Telegram users access to Grok for 1 year, Durov wrote in a May 28 X post. The company will receive $300 million in cash and equity from xAI and “50% of revenue from xAI subscriptions sold via Telegram.”
Musk later denied that a deal between the two companies was signed. According to Durov’s response, formalities on the deal “are pending.”
Toncoin (TON), Telegram’s sole digital asset accepted for app services, surged by over 20% to $3.69 on May 28, following the partnership announcement.
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