Telegram Secures $1.7 Billion Bond Funding Amid Partnership Controversy

Telegram recently completed a massive $1.7 billion convertible bond offering that closed on May 28, marking one of the largest fundraising rounds in the messaging platform’s history.

The company plans to use $955 million from these proceeds to repay existing bondholders from a 2026 maturity date, while allocating the remaining $745 million toward operational expansion and working capital requirements.

The bond sale attracted major institutional investors, including asset management giant BlackRock and Abu Dhabi’s sovereign wealth fund Mubadala.

These investors received special terms allowing them to purchase Telegram shares at a 20% discount during any future initial public offering (IPO). The 9% coupon rate reflects current market conditions and investor appetite for high-growth technology companies.

Pavel Durov, Telegram’s co-founder, expressed gratitude for the overwhelming investor response. The initial target of $1.5 billion was expanded due to exceptional demand that far exceeded available allocation slots.

This strong investor interest demonstrates confidence in Telegram’s business model and growth trajectory within the competitive messaging app market.

Telegram Partnership Drama Creates Market Volatility

The bond announcement coincided with significant controversy surrounding an alleged partnership with Elon Musk’s artificial intelligence company xAI. Durov initially claimed the two companies had agreed to a $300 million cash and equity deal that would integrate Grok AI chatbot functionality across Telegram’s platform.

The proposed arrangement included revenue sharing of 50% from xAI subscriptions sold through Telegram channels.

However, Musk quickly contradicted these claims on social media platform X, stating definitively that “no deal has been signed.” Durov later acknowledged that while discussions occurred, formal documentation remained incomplete.

No deal has been signed

— Elon Musk (@elonmusk) May 28, 2025

This public disagreement created immediate market reactions, particularly affecting Toncoin (TON), Telegram’s native cryptocurrency.

TON prices surged over 20% to $3.69 following the initial partnership announcement, demonstrating how closely cryptocurrency markets track Telegram’s business developments.

After Musk’s denial, TON retreated to approximately $3.35, highlighting the volatile nature of crypto markets responding to corporate news cycles.

Strategic Positioning in Crypto-Friendly Messaging

Telegram continues building its reputation as the preferred messaging platform for cryptocurrency communities worldwide. The company accepts TON as payment for premium services and maintains strong connections with blockchain developers and crypto traders.

This positioning creates unique monetization opportunities that traditional messaging apps cannot access.

The recent fundraising success positions Telegram for continued expansion while maintaining operational independence.

Unlike many technology companies seeking public markets immediately, Telegram’s substantial cash reserves provide flexibility for strategic decisions without external pressure from public shareholders.