Telegram, the popular messaging platform, has recently unveiled its financial details for 2023 following the arrest of its CEO Pavel Durov on August 24, revealing substantial holdings in cryptocurrency.
According to Telegram's financial statement, the company held $400 million in digital assets by the close of 2023. This comes amid a year of mixed financial performance, where despite generating $342.5 million in revenue, an operating loss of $108 million was recorded.
The app's revenue streams have grown significantly, with around 40% of earnings coming from activities linked to digital assets. These include an "integrated wallet" feature and the "sale of collectibles."
The integrated wallet allows users to store, send, receive, and trade various cryptocurrencies directly within the app.
Meanwhile, the sale of collectibles involves digital items such as usernames and virtual phone numbers, which Telegram users can buy, sell, and trade, with Telegram earning a fee from these transactions.
Telegram's user base has also seen growth, with premium users rising from four million at the end of 2023 to over five million currently.
According to The Financial Times, the company also recorded $11.66 million in in-app revenue during the first two months of 2024, contributing to the more than $4 billion it has raised since its inception. India led global downloads of the app in 2023, with 83.85 million users, while the United States ranked third with 29.92 million downloads.
Telegram’s CEO in Legal Troubles
Telegram's CEO, Pavel Durov, was arrested on August 24 at Le Bourget airport near Paris on charges that include terrorism, conspiracy, trafficking, fraud, and money laundering.
His arrest has notably impacted Toncoin (TON), a cryptocurrency linked to The Open Network, which was originally developed by Telegram.
In the week following Durov's arrest, TON's price plummeted by over 21%, dropping from $6.70 to approximately $5.30, while its market capitalization dipped to $13.42 billion.
Despite the setback, some analysts believe that if Durov's legal troubles are seen as isolated incidents, Toncoin could recover, with the current dip potentially presenting a buying opportunity.
The recent Telegram financial statement, alongside these recent events, has continued to captivate the tech and financial worlds.
Given that the arrest situation is still ongoing, many are closely watching how much impact it would have on Telegram's financial statement and how the dropping price of TON will also affect the company.
Final Thoughts
Telegram's financial disclosures reveal a substantial $400 million in cryptocurrency holdings, underscoring the platform's significant involvement in the digital currency space. This substantial reserve reflects Telegram's strategic emphasis on blockchain technology and digital assets, positioning it as a key player in the evolving financial landscape while also raising questions about future regulatory and market implications.