Pavel Durov, CEO of the widely used messaging platform Telegram, revealed that he personally invested in approximately 25% of the company’s recent bond issuance. While Telegram has millions of users, it is not yet a profitable company. By purchasing a sizable portion of these bonds himself, Durov signals confidence in Telegram’s financial future and ability to repay bondholders. This personal investment from its CEO may help assure bond investors worried about Telegram’s lack of profits so far.
This week, the messaging app Telegram raised $270 million by issuing bonds to finance its operations and growth until it becomes profitable, according to an announcement made on Tuesday by Telegram’s CEO Pavel Durov.
Telegram is not yet making money and has increasing costs due to its rapid user growth – it now has 800 million monthly active users and is adding 2.5 million users daily.
Durov revealed that he personally invested tens of millions of dollars to acquire around 25% of these new Telegram bonds. This is on top of the hundreds of millions he has spent over the past decade to keep Telegram running.
By purchasing a substantial portion of the bonds himself, Durov aims to fund Telegram’s growth out of pocket until the company can reach break-even based on its own revenue.
Telegram has long been popular among cryptocurrency enthusiasts, partly due to its past attempt to launch its own crypto token called GRAM. Although that effort and associated SEC lawsuit failed, a spinoff project called Toncoin continues today.
In his announcement, Durov said some people suggested he should have bought a house or jet with the money instead of investing it in Telegram bonds. However, Durov said he prefers to remain focused on his work at Telegram rather than spending on luxuries, besides owning some Bitcoin, Toncoin, and of course Telegram itself.
Following Durov’s announcement, the price of Toncoin increased by 1% as his continued dedication to Telegram and cryptocurrency was seen as a positive sign by Toncoin investors.
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