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Messaging giant Telegram closed a 【$1.7 billion】 convertible bond deal on May 28, surpassing its initial $1.5 billion target. The bonds carry a 9% coupon rate, with proceeds split between refinancing 【$955 million】 of 2026-maturing debt and injecting 【$745 million】 in fresh capital for expansion.
——The demand shocked even our optimistic forecasts—— acknowledged co-founder Pavel Durov in a Telegram post. Major players like BlackRock and Mubadala participated, securing rights to buy future IPO shares at a 【20% discount】. This marks Telegram's third major fundraising since 2021, reflecting sustained investor confidence in its crypto-integrated platform.
Amid the bond success, Telegram announced a tentative partnership with Elon Musk's xAI to integrate Grok AI. The proposed deal includes 【$300 million】 in cash/equity plus revenue sharing. While Durov called it agreed, Musk later denied finalization on X——creating what industry observers term a 【negotiation limbo】 common in high-stakes tech deals.
The partnership news triggered a 【20% price jump】 for Toncoin (TON), Telegram's exclusive crypto for in-app services. Trading at $3.69 post-announcement, the rally demonstrates market sensitivity to Telegram's ecosystem developments. Analysts note this mirrors patterns seen when WhatsApp explores blockchain integrations.
Notably, only 56% of bond proceeds address existing debt—a lower ratio than typical refinancing deals. This suggests Telegram's leadership is betting heavily on growth, particularly in payments and AI features. The convertible structure allows bondholders to switch to equity if Telegram goes public before March 2028.
——They're threading between crypto innovation and compliance—— remarked a fintech analyst, referencing Telegram's 2020 SEC settlement. The company has since avoided labeling TON as a security while building crypto payment tools. This bond offering carefully excludes direct crypto linkages, focusing instead on messaging infrastructure.
With 900 million active users, Telegram plans to allocate new funds toward: • AI chatbot development • Emerging market server infrastructure • Creator monetization tools The xAI collaboration could accelerate these plans if finalized, potentially creating a WeChat-style superapp with decentralized elements.