Telegram revenue soars 65% to $870 million! Toncoin becomes the engine, $500 million bond freeze casts a shadow

According to unaudited financial statements obtained from the UK Financial Times, the crypto communications giant Telegram’s revenue soared to $870 million in the first half of 2025, a 65% year-over-year increase. Of this, approximately $300 million came from an “exclusive agreement” closely related to the ecosystem’s cryptocurrency Toncoin, marking a profound reshaping of its revenue structure driven by crypto business.

However, behind this impressive revenue is an embarrassing net loss of $222 million, primarily due to a write-down in the value of its holdings in Toncoin. Meanwhile, about $500 million in company bonds have been frozen at the Central Securities Depository in Russia due to Western sanctions against Russia, casting geopolitical shadows over Telegram’s financial outlook and IPO plans.

Revenue Structure Transformation: How Toncoin Became Telegram’s New Growth Engine

The first half of 2025 was a period of rapid revenue growth for Telegram, yet with underlying complexities. According to disclosed financial data, this messaging platform with over 1 billion monthly active users achieved $870 million in revenue, a 65% increase from $525 million in the same period last year. This growth rate far exceeds many traditional tech companies, with its core driver clearly pointing to deep integration of its ecosystem’s cryptocurrency, Toncoin. A pivotal turning point is that nearly one-third of total revenue—about $300 million—comes from the so-called “exclusive agreement.” Although the specifics of this agreement are not fully public, based on The Financial Times’ reports on Telegram’s past earnings, this type of income is strongly correlated with Toncoin and may involve project parties paying Toncoin for exclusive promotion, bot services, or specific user reach rights within the Telegram platform.

This shift reveals a fundamental evolution in Telegram’s business model. While traditional internet revenue pillars—advertising and subscriptions—still grow, their pace and proportion are being challenged by crypto-related activities. In the first half of the year, advertising revenue grew modestly by 5% to $125 million; in contrast, premium subscription revenue surged 88% to $223 million, with paid users jumping from 4 million at the end of 2023 to 15 million. Interestingly, whether purchasing Telegram Premium subscriptions or making various in-app purchases on the Fragment marketplace, Toncoin is one of the preferred settlement methods. This means Toncoin not only flows into the company as “advertising fees” but is also deeply embedded as a “payment currency” in its core monetization processes, building an internal economic cycle.

Founder Pavel Durov’s public support and active integration of Toncoin are key to implementing this strategy. Although Toncoin was initially developed internally by Telegram and later transferred to the open-source community due to regulatory disputes with the US SEC, Durov has never hidden his ambitions. He insists that advertising on the platform must be paid with Toncoin and has seamlessly integrated a series of Ton blockchain features (such as wallets and username auctions) into the app. This “All in TON” strategy has yielded immediate financial results: revenue generated from Toncoin-related activities now rivals traditional income streams. Telegram even informed investors that, as of the report, it had sold over $450 million worth of Toncoin this year, accounting for about 10% of Toncoin’s total market cap of $4.6 billion at that time, exerting significant market influence.

Telegram 2025 H1 Financial and Operational Key Data

• Total Revenue: $870 million (up 65% YoY)
• Toncoin-related “Exclusive Agreement” Revenue: approximately $300 million (34.5% of total revenue)
• Advertising Revenue: $125 million (up 5% YoY)
• Premium Subscription Revenue: $223 million (up 88% YoY)
• Net Loss: $222 million (compared to net profit of $334 million in the same period last year)
• Operating Profit: nearly $400 million
• Total Digital Asset Holdings (end of June): $787 million (compared to $1.3 billion last year)
• Monthly Active Users: over 1 billion
• Daily Active Users: about 500 million
• Paid Subscribers: 15 million

Revenue Growth Masks Losses: How the “Rollercoaster” of Toncoin Prices Drag Down Net Profit

Despite stellar revenue performance, Telegram’s bottom line for the first half of 2025 shows a glaring red figure: a net loss of $222 million. This is a stark contrast to the net profit of $334 million in the same period last year. The core reason for this “revenue increase but profit decrease” or even “revenue increase but loss” phenomenon is not operational issues—indeed, the company generated nearly $400 million in operating profit—but rather the sharp fluctuations in the value of its massive crypto assets on its balance sheet, specifically due to a write-down of its Toncoin holdings.

2025 has been a challenging year for the entire cryptocurrency market, and Toncoin has not been spared. According to CoinGecko data, Toncoin’s price declined by about 69% in 2025. Its price fell from a historical high of $8.25 to approximately $1.93 at the time of reporting. Although this still represents over a 60% increase compared to a year ago, the significant price correction has had a huge impact on Telegram’s financial statements, which must value digital assets at market price under accounting standards. The decline in price directly leads to a reduction in asset value, reflected as a substantial paper loss on the profit and loss statement. By the end of June, the total value of digital assets held by the company had fallen from $1.3 billion a year earlier to $787 million, due to both asset sales and price drops.

This financial situation exposes the particular risks faced by native crypto companies (or traditional companies deeply involved in crypto). Telegram’s business model has successfully generated huge cash flows and revenue through Toncoin, but its financial health is highly tied to Toncoin’s market price, subjecting it to significant volatility risk. This is akin to a gold mining company that earns revenue from selling gold but sees profits eroded by a plunge in the market price of its inventory. For investors and bondholders, evaluating Telegram’s value becomes exceedingly complex: they must consider traditional metrics like user growth and operating profit, as well as assess its crypto holdings’ size, cost basis, and market risk, similar to asset management evaluation.

On the positive side, nearly $400 million in operating profit demonstrates that, after removing the impact of crypto asset price fluctuations, Telegram’s core messaging and service platform is already a highly profitable business. Its user base (over 1 billion monthly active users) and increasing paid user conversion rate provide a solid foundation. However, the reality of net losses will undoubtedly pose challenges to its ongoing IPO plans. Will potential public market investors accept a tech company whose profits fluctuate significantly with its “company currency” price? This is a key issue that underwriters and Durov need to carefully explain. Telegram has already told investors that Durov will prioritize improving the Ton ecosystem and further integrating cryptocurrency into the platform in 2026, indicating the company intends to continue deepening this high-growth, high-volatility path rather than retreat.

Geopolitical Minefield: $500 Million Bonds Frozen and Obstacles to IPO

While Telegram is excited about its revenue growth and crypto integration strategy, a past financial commitment is dragging it into a complex geopolitical quagmire. Reports indicate that approximately $500 million of its bonds are frozen at the National Settlement Depository in Russia, a direct consequence of Western sanctions against Russia due to the Russia-Ukraine conflict. This situation is highly ironic, as founder Pavel Durov has long sought to distance himself from his homeland Russia, even leaving VKontakte—his co-founded social network—due to refusal to provide user data to Russian security agencies, and relocating Telegram’s headquarters to Dubai.

This frozen bond stems from Telegram’s 2021 bond issuance, which included some Russian investors. Although Telegram emphasized in subsequent statements that “most of these bonds have been repaid” and that the latest $1.7 billion bond issuance in May 2025 “had no Russian buyers at all,” the freezing of $500 million still reveals that the company cannot fully sever ties with the Russian capital market. Like all Western companies still conducting business with NSD after sanctions, Telegram faces compliance and operational challenges in paying Russian bondholders. The company has informed bondholders of its intention to make payments upon maturity, but whether the funds can reach Russian holders through sanctioned depositories depends on the payment agents and custodians.

This incident impacts Telegram far beyond liquidity concerns for $500 million. It casts a shadow over its global image and future capital operations, especially its highly anticipated IPO. Durov is currently under formal investigation in France over platform content moderation issues, which has slowed IPO progress. Now, the frozen bonds related to Russia will likely raise further questions from regulators and potential investors regarding corporate governance, compliance risks, and geopolitical exposure. Bondholders are closely watching the progress of the French case, as it could influence IPO timing; under the terms, recent bondholders have the right to convert bonds into equity at up to a 20% discount during the IPO.

This bond controversy highlights the common dilemma faced by tech giants born in specific regions but aiming for global reach. Although Durov portrays himself as a defender of free speech and an independent entrepreneur beyond any government, the company’s early financing choices, user base composition, and founder background make it difficult to remain entirely insulated in an increasingly fragmented geopolitical landscape. For Telegram, resolving this $500 million “legacy issue” carries enormous symbolic and practical significance. It must navigate a narrow path between complying with Western sanctions and fulfilling contractual obligations to all creditors, as any misstep could damage its efforts to establish a “neutral, decentralized” brand image.

Future Outlook: Navigating Crypto, Going Public, and Geopolitical Crossroads

Looking ahead, Telegram stands at a crossroads filled with opportunities and uncertainties. Its financial trajectory is clearly tied to deeper integration with Toncoin. The company has explicitly told investors that Durov’s priority in 2026 is to improve the Ton ecosystem and further embed this cryptocurrency into the platform. This suggests we may see more core features or revenue scenarios linked to Toncoin, emphasizing its “social finance” attributes. As Toncoin becomes listed on more mainstream CEXs, its liquidity and recognition could further enhance Telegram’s ecosystem value. The company’s annual revenue target is $2 billion, with nearly half achieved in the first half, showing strong growth momentum.

However, the road to the public markets remains fraught with obstacles. The legal case in France and the frozen bonds in Russia are two prominent “barriers.” They point to a core question: can Telegram’s “predictability” and “risk controllability” meet the expectations of public market investors? Tech investors may understand the growth story, but with crypto price volatility, legal risks related to content moderation, and complex geopolitical exposure, this investment narrative becomes overly complicated and unconventional. Telegram needs to demonstrate to the market that it can not only generate impressive revenue growth but also establish a robust governance framework to manage these non-traditional risks.

From a broader perspective, Telegram’s case exemplifies the extreme yet insightful fusion of Web2 and Web3 worlds. It demonstrates how deep integration of native crypto economies can inject new, explosive revenue streams into a mature, large-scale internet product. At the same time, it fully exposes the new risk dimensions brought by this fusion: financial volatility, regulatory frontiers, and geopolitical sensitivities. Whether Telegram can successfully go public and how its valuation will be shaped afterward will serve as a crucial reference for the entire “crypto-empowered traditional business” track.

Ultimately, Telegram’s story is not just about a messaging app or a cryptocurrency. It is a microcosm of how a company, in a chaotic period where old rules have not yet fully exited and new rules are not yet established, leverages technological innovation to reshape itself while struggling with entrenched financial, legal, and geopolitical systems. Regardless of when and how its IPO materializes, Telegram has already demonstrated through its financial data that embedding crypto genes deep into its core can unleash enormous business potential; the many challenges it faces also serve as warnings to future entrants that this path is far from smooth.