Telegram Raises $1.7 Billion in Convertible Bonds to Scale TON Blockchain and Eyes IPO Amid Growing Crypto Integration
Telegram, the popular encrypted messaging platform, has secured $1.7 billion through the issuance of seven-year convertible bonds. This strategic move aims to fuel the expansion of the Telegram Open Network (TON) blockchain ecosystem and strengthen the company’s operational growth. Strong institutional demand, including participation from leading firms such as BlackRock and Mubadala, prompted Telegram to increase the offering from $1.5 billion. Most proceeds—approximately $955 million—will be used to repay earlier bondholders, with the remaining $745 million providing fresh working capital. Investors are offered a 20% discount on Telegram shares in the event of a future IPO, anticipated as early as 2028. The bond offers a fixed coupon rate estimated between 5–9%, helping Telegram secure 3–4 years of operating runway given annual expenses of $400–500 million. This funding supports ambitious initiatives, including in-app payments, decentralized apps (dApps), NFT and gaming functionality, and global payment solutions powered by TON. Unlike its halted 2020 Gram token ICO, Telegram chose a bond structure to circumvent regulatory risks and maintain IPO flexibility. The news coincides with Telegram’s rising influence in the crypto world and possible collaborations in AI, such as ongoing talks with xAI. Recent announcements have spurred a 20% surge in TON’s price, highlighting strong institutional and market confidence. Analysts view this fundraising as pivotal for Telegram’s blockchain integration, widened ecosystem utility, improved compliance, and potential monetization, but note that sustained revenue growth and regulatory clarity will be key to realizing its super-app ambitions.
Bullish
Telegram’s successful $1.7 billion convertible bond raise demonstrates robust institutional confidence in its ecosystem and ambitious blockchain-driven strategy. The fresh capital will accelerate TON blockchain adoption, in-app payments, and super-app development while offering strong incentives—such as a 20% IPO discount—to investors. The move away from token sales to compliant financing reduces regulatory risk and supports sustainable growth. The immediate effect was a notable 20% surge in TON’s price, indicating heightened trader optimism. Over the long term, successful execution of these initiatives could further enhance TON’s market position and utility, creating tailwinds for price appreciation. However, market participants should continue to monitor Telegram’s revenue scalability and regulatory developments, as these factors can influence long-term prospects.