Toncoin Transactions Provide Financial Cushion for Telegram

The detention of Pavel Durov in France had no “significant impact” on Telegram’s operations, thanks to a substantial increase in the value of cryptocurrencies held by the company. This is according to financial reports provided to the messenger’s investors, which were reviewed by the Financial Times.

Cryptocurrency and Profitable Deals

The documents reveal that in the first half of 2024, Telegram’s digital assets increased in value to $1.3 billion, compared to nearly $400 million at the end of 2023. Additional revenue was generated from the sale of Toncoin and another transaction related to this cryptocurrency.

From January to the end of June 2024, Telegram earned $525 million in revenue, a 190% increase compared to the same period in 2023.

Almost half of this amount—$225 million—came from a one-time deal with an unnamed party. Under the terms, Telegram “received compensation” for allowing small businesses to use Toncoin as an exclusive payment method for advertising in the app. The exclusivity agreement was terminated on October 1, according to the report.

The messenger also reported that it “holds a significant amount of Toncoin and is exposed to changes in its market value.” Following Durov’s detention, the team faced volatility in the asset. At the time of writing, Toncoin is trading nearly 10% lower than at the end of August.

From January to June 2024, the company earned $353 million from the sale of digital assets and has since sold Toncoin worth $348 million.

Profit for the first half of the year after taxes amounted to $335 million. In comparison, Telegram earned $342 million in revenue for the entire year of 2023, with losses amounting to $173 million.

Bonds, Subscriptions, and Advertising

Telegram raised approximately $2.4 billion in debt financing, due in 2026. According to the report, in September 2024, Telegram repurchased its own bonds worth $124.5 million. Following Durov’s detention, the bonds recovered in price but are still trading below par—at 95 cents on the dollar.

In March, Durov told the Financial Times that Telegram is increasing its monetization efforts through advertising and subscriptions. He also suggested that the company might go public in 2026.

According to the report, the messenger’s advertising revenue nearly doubled, reaching a record $120 million in the first half of the year, while premium subscriptions brought in $119 million compared to $32 million in the same period last year.

According to an informed source, the company’s long-term strategy focuses on selling advertising and premium subscriptions, while selling part of its cryptocurrency reserves was merely a tactical move in favorable market conditions.

The report states that Durov’s detention “did not significantly impact Telegram’s operations and the group’s business activity,” as the charges were directed against the founder, not the company itself.

The messenger “maintains a practice of content verification and cooperation with judicial authorities in strict accordance with current French legislation,” while expanding its team of moderators.

French authorities have brought a number of preliminary charges against Pavel Durov, alleging that Telegram failed to address supposed criminal activity on the platform.

On August 28, the businessman was placed under judicial supervision with a €5 million bail and is required to report to the police twice a week. He is prohibited from leaving France until March 2025.

In his first post after release, Durov announced enhanced moderation on Telegram.

In September, the messenger began promptly processing and responding to legal requests from European authorities.