Telegram has reported significant financial growth in the first half of 2024, with revenue reaching $525 million, driven by strong performance in cryptocurrency holdings. This is despite ongoing legal challenges facing its CEO, Pavel Durov.
What Happened: Telegram’s financial disclosures indicate that the company has benefited from the rising value of its cryptocurrency holdings, which have grown to $1.3 billion, reported Financial Times, citing the company's unaudited financial statements.
This increase, along with proceeds from selling Toncoins, has provided a financial cushion for the Dubai-based firm amid Durov’s legal troubles.
In August, Durov was detained by French authorities in Paris, facing preliminary charges related to alleged criminal activities on the platform.
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Despite these challenges, Telegram informed investors that the situation has not materially impacted its operations.
The company generated $225 million from a one-time deal involving Toncoin (CRYPTO: TON), initially developed by Telegram but now managed by an open-source community.
Telegram’s financial statements also show a post-tax profit of $335 million for the first half of the year.
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Why It Matters: Telegram’s financial health has been under scrutiny, especially with reports suggesting a loss of $108 million on revenue of $342 million in the previous year.
Despite these challenges, the company has been eyeing a $30 billion IPO in 2026. It remains focused on monetization through ads and premium subscriptions.
A significant portion of Telegram’s revenue, over 40%, is derived from crypto-related operations, including its integrated wallet and sale of collectibles.
This reliance on cryptocurrency has provided a financial buffer amid legal challenges.
Additionally, investments like the $5 million by V3V Ventures in premium Telegram usernames highlight the platform’s potential in the crypto space, as these usernames are seen as valuable assets for building crypto channels.
Price Action: Toncoin is priced at $6.26, reflecting a 2.16% rise over the past 24 hours. However, its trading volume has declined by 15.18%, amounting to $626.53 million at the time of writing, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
