Telegram Bond Sale Lures BlackRock, Citadel Into $1.5B High-Yield Bet – Despite CEO Probe

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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May 28, 2025

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Telegram is proceeding with a $1.5 billion bond sale, according to a Wall Street Journal report published on May 28. The messaging platform has secured interest from institutional backers, including BlackRock, Citadel, and Abu Dhabi’s Mubadala.

The proceeds are earmarked for repurchasing the remaining obligations from its 2021 bond issuance, some of which the company previously bought back using internal funds. The new five-year debt carries a 9% yield and includes an option for conversion to equity if the firm eventually lists publicly.

Telegram CEO Faces Travel Restrictions Amid Legal Probe

The bond sale comes as Telegram CEO Pavel Durov remains confined to France amid an ongoing investigation.

Authorities there have filed preliminary charges, alleging he failed to comply with requests related to illegal content circulating on the app. Durov disputes the claims and maintains the company has met all legal obligations.

“We complied with all the binding legal requests we received. So up until this day, we don’t understand what we did wrong,” Durov said.

Earlier this month, French prosecutors rejected Durov’s request to travel to the United States for meetings with investors, citing a lack of compelling justification. His ability to leave France remains restricted pending the outcome of the inquiry.

Institutional Capital Backs Hybrid Digital Models

Despite the legal situation, Telegram’s financial position has strengthened. The company reported a $540 million profit in 2024 on $1.4 billion in revenue, following a loss the prior year. It forecasts revenue of $2 billion and a profit exceeding $700 million for 2025.

Growth in paid subscriptions, advertising, and in-app purchases has driven revenue gains. Investors appear to remain confident in the platform’s long-term strategy despite the ongoing legal uncertainty surrounding its leadership.

Telegram’s bond sale comes at a time when crypto-related firms are increasingly turning to traditional capital markets to secure funding.

Large debt offerings linked to digital business models indicate that some investors are willing to back projects that operate across both regulated finance and blockchain-based tools.

The company’s structure, combining messaging services with paid digital features and crypto-based monetization, points to a growing trend in the sector.

As platforms build financial products into user networks, institutional capital may become more involved in shaping the direction of digital asset infrastructure.

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