Telegram issues $270 million bond, founder Pavel Durov owns Bitcoin and TON

The encrypted messaging software Telegram raised $270 million this week through the issuance of bonds, with its founder and CEO Pavel Durov purchasing approximately a quarter of the bonds. Durov stated that he also holds Bitcoin and TON.

Telegram Insists on Independent Operation, Yet to Turn Profit

According to previous reports, Pavel Durov stated at the end of 2020 that Telegram was entirely self-funded even in its free state. However, with an increasing user base, Telegram had to make a choice: either start generating profits or sell the company.

He expressed his reluctance to sell Telegram to other major companies like WhatsApp. Telegram must maintain its independent operation as a model striving for perfection.

Last June, Telegram launched a premium subscription service offering over 10 exclusive features. The Telegram team stated that contributions from subscribers would help them improve and expand the application in the coming decades. They also aim to maintain their values of being free, independent, and user-centric, with the goal of redefining how tech companies operate.

Despite operating until now, Telegram has yet to turn a profit. Durov mentioned:

The new financing goal is to bring it closer to a "break-even" point, with Telegram being "much closer to absolute profitability" compared to competitors like Twitter and Snap.

Telegram has been seeking to go public for years. It raised $1.7 billion in its ICO in 2018 but was sued by the SEC for violating securities laws. With the global market continuing to be weak, Telegram has had to rely on private investors to fund its operations.

Pavel Durov Holds Bitcoin and TON

Pavel Durov's post stated that over the past 10 years, he has spent hundreds of millions of dollars to maintain Telegram's operations. This time, he purchased about a quarter of the new bonds, investing tens of millions of dollars once again.

He mentioned his preference for focusing on work rather than "owning" anything, except for Bitcoin and some TON. According to The Block report, Durov bought 2,000 bitcoins for about $1.5 million a decade ago, which are now worth around $60 million at current prices.