Telegram, the widely used messaging app popular in the crypto community, has successfully raised $1.7 billion through a convertible bond offering that closed on May 28, 2025. The round featured a 9% coupon and saw participation from major global investors including BlackRock and Mubadala.
Use of Funds: Debt Repayment and Growth Capital
According to a report by Bloomberg, the proceeds will be split into two primary allocations:
- $955 million will go toward repaying outstanding debt from Telegram’s 2026 bond issue.
- $745 million is fresh capital intended to support operations and platform expansion.
Telegram co-founder Pavel Durov celebrated the response in a post on the platform:
“The response from investors was phenomenal… Due to strong demand, we expanded the offering beyond the initial $1.5 billion — yet demand still far exceeded what we could allocate.”
Convertible Bonds Linked to Future IPO
The offering also included a convertible option: investors can purchase Telegram shares at a 20% discount in the event of a future initial public offering (IPO). While no IPO date has been confirmed, the move signals Telegram’s long-term strategic intent to move toward public markets.
Telegram and xAI: A $300M Deal in the Making?
The bond sale comes on the heels of another major headline — Telegram’s tentative agreement with Elon Musk’s AI venture, xAI, to integrate the Grok chatbot into the Telegram platform for one year.
Details include:
- Telegram would receive $300 million in cash and equity from xAI.
- Telegram would earn 50% of revenue from Grok subscriptions sold via its platform.
However, Musk has publicly denied that a finalized agreement exists. Durov responded, noting that “formalities on the deal are pending.”
Telegram’s Crypto Roots Remain Strong
Telegram continues to be a key player in crypto and digital finance, offering tools for blockchain developers, token projects, and crypto communities. Its user base and technological stack position it uniquely as a decentralized communications hub.
Conclusion
Telegram’s $1.7B bond raise reflects strong investor confidence and hints at a potential IPO trajectory. Meanwhile, its growing involvement in AI and continued appeal in the crypto space signal ambitious expansion plans beyond messaging.