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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Why Trust Cryptonews
Telegram has emerged as a major player in the cryptocurrency market, with its crypto holdings skyrocketing to $1.3 billion in the first half of 2024 from $400 million at the end of 2023.
Financial disclosures from the Financial Times reveal that the company’s gains in crypto holdings, revenue from Toncoin sales, and a terminated exclusivity deal with Toncoin have significantly bolstered its finances.
Despite this growth, the Dubai-based messaging giant faces turbulence as its founder and CEO, Pavel Durov, contends with legal challenges in France.
Durov’s detainment in August over allegations tied to criminal activities on Telegram’s platform briefly shook investor confidence.
Still, the company insists the episode has had no material impact on its operations.
Telegram’s Crypto Holdings: How Did $1.3B Happened?
According to the disclosures, the platform’s cryptocurrency holdings tripled in value during the first half of 2024, reaching $1.3 billion.
This growth is majorly attributed to Telegram selling $353 million worth of digital assets in the first six months of 2024.
The company further monetized Toncoin by securing a $225 million exclusivity deal that made the cryptocurrency the sole method for small businesses to purchase ads on its platform.
While the deal ended on Oct. 1, it significantly boosted Telegram’s income during the period.
Sources familiar with the matter disclosed that Telegram tactically capitalized on favorable market conditions to sell portions of its crypto reserves, enhancing its revenue without compromising its long-term financial strategy focused on ads and subscriptions.
In total, Telegram recorded $525 million in revenue for the first half of the year, marking a 190% increase from the same period in 2023.
Advertising revenue nearly doubled to $120 million, while premium subscriptions contributed $119 million, up from $32 million the previous year.
Despite these gains, Telegram remains exposed to Toncoin’s market value fluctuations.
The coin’s price dropped 25% after Durov’s arrest but recovered following a broader crypto rally.
On Nov. 24, Toncoin hit a high of $6.32 and is currently trading around $5.70.
Legal Turmoil and Operational Challenges: How Telegram is Bouncing Back
Telegram’s financial strides have been overshadowed by legal challenges involving its founder.
French authorities detained Pavel Durov in August upon arrival at Le Bourget airport.
He faces multiple charges over Telegram’s alleged failure to address illicit activities on its platform, including accusations tied to child abuse material and terrorist content.
Although Durov was released on bail, he remains prohibited from leaving France while investigations continue.
He expressed shock at his arrest, citing Telegram’s compliance with EU regulatory requirements and cooperation with law enforcement.
Durov also reiterated his readiness to exit markets conflicting with the platform’s principles.
The company has quickly assured investors that Durov’s legal troubles have not affected its operations.
However, the messaging app has faced scrutiny over its moderation practices. To address regulatory concerns, it is now expanding its content review team and updating its policies.
Telegram’s financial disclosures solidified its status as one of the most downloaded apps globally, with over 950 million monthly active users in 2024.
The company has also demonstrated resilience in capital markets, using part of its cryptocurrency gains to repurchase $124.5 million in bonds, which have since recovered in value following a post-detention dip.
Notably, Telegram is expecting a potential IPO in 2026 and continues to focus on diversifying revenue streams through ads, subscriptions, and digital assets.
