In a major show of investor confidence, messaging giant Telegram has raised an impressive $1.7 billion through a convertible bond sale — signaling both financial maturity and bold ambition as the platform continues its global push.
The bond round, which officially closed on May 28, featured a 9% coupon and drew participation from a slate of high-profile backers. According to Bloomberg, approximately $955 million from the raised funds will be directed toward repaying Telegram’s previous bond issue that’s set to mature in 2026, while the remaining $745 million will serve as fresh working capital for operational support and future growth.
Telegram’s co-founder and CEO Pavel Durov shared his excitement in a post on the platform, calling the investor response “phenomenal” and noting that the demand exceeded expectations significantly:
“We are deeply grateful to the investment funds that have supported us over the years. Due to strong demand, we expanded the offering beyond the initial $1.5 billion — yet demand still far exceeded what we could allocate.”
The scale of this bond raise highlights just how far Telegram has come since its early days as a secure, privacy-focused messaging app. It’s now deeply entrenched in the Web3 ecosystem, with a loyal crypto-native user base, and it has increasingly become a cornerstone of digital communication for the blockchain industry.
A Crypto Magnet Attracting Traditional Capital
Among the notable names who backed the deal are BlackRock, one of the world’s largest asset managers, and Mubadala, the Abu Dhabi sovereign wealth fund. Investors in this offering also received an attractive kicker — the option to convert their holdings into Telegram shares in the event of a future initial public offering (IPO), with a built-in 20% discount. That clause alone suggests growing confidence in Telegram’s eventual public listing — a milestone that’s been long anticipated but never formally confirmed.
Telegram’s appeal to the crypto world is no secret. With its seamless support for Toncoin (TON) and increasing involvement in blockchain-powered features, the app is positioning itself as a gateway to decentralized services for millions. The fact that it has secured such a substantial round from traditional finance institutions speaks volumes about its crossover potential.
The xAI Twist: A Tentative Partnership with Elon Musk?
The funding news comes shortly after buzz about a potential partnership between Telegram and Elon Musk’s AI company, xAI. On May 28, Durov claimed via an X post that Telegram users would soon gain access to Grok, xAI’s conversational AI assistant, for a full year — as part of a deal worth $300 million in combined cash and equity for Telegram. The arrangement also reportedly includes a 50% revenue share on xAI subscriptions made via Telegram.
However, the celebration was short-lived. Elon Musk later denied that any formal agreement had been signed, prompting Durov to clarify that although a mutual understanding exists, some final formalities are still being worked out. While the deal may be in limbo, its announcement alone was enough to send ripples through the crypto world.
TON Price Pops on the Hype
One of the more immediate effects of this bond news — and the rumored xAI tie-up — was seen in the price of Toncoin (TON), Telegram’s ecosystem token. On May 28, the price of TON surged by more than 20%, climbing from around $3.30 to $3.69, according to CoinMarketCap data.
Toncoin, which serves as the exclusive digital asset for accessing certain Telegram services, is increasingly seen as a barometer of sentiment around Telegram’s broader ecosystem. The token’s reaction underscores how closely the messaging app’s strategic moves are tied to the broader Web3 economy.
What’s Next for Telegram?
Raising $1.7 billion through a convertible bond issuance — particularly one oversubscribed beyond its initial $1.5 billion target — demonstrates that Telegram is not just surviving, but thriving. It also gives the company additional runway to scale, expand its Web3 integrations, and possibly prepare for a long-awaited IPO.
While the future of its relationship with xAI remains uncertain, one thing is clear: Telegram is doubling down on both innovation and investor trust. For a platform that already commands a key role in crypto communications, this latest funding marks another milestone in its transformation from messaging app to global tech powerhouse.
