Recent events surrounding Telegram founder Pavel Durov’s arrest have highlighted the complexities of content moderation on messaging platforms. However, a deeper look into Telegram’s financials reveals that its cryptocurrency operations contribute significantly more to its bottom line than messaging services.
Leaked financial documents for 2023 indicate that cryptocurrency transactions play a crucial role in Telegram’s revenue model. The company, incorporated in the British Virgin Islands, reported $342.5 million in revenue last year, with a considerable portion stemming from crypto activities.
Two line items in Telegram’s revenue breakdown, “integrated wallet” and “sale of collectibles,” account for over 40% of the company’s total revenue. The “integrated wallet” is a new business line for Telegram, suggesting a growing focus on cryptocurrency services.
Telegram’s balance sheet further underscores the significance of cryptocurrency to its operations. Digital assets, valued at nearly $400 million, represent a larger portion of its assets than cash and cash equivalents.
Related-party transactions reveal that Durov not only purchased $64 million of Telegram’s convertible bonds but also acquired $300 million worth of Telegram Premium subscriptions using Toncoin, the native cryptocurrency of the Telegram Open Network.
