Telegram's Financial Statement Reveals $400M in Crypto Holdings

Telegram's Financial Statement Reveals $400M in Crypto Holdings
Telegram's Financial Statement Reveals $400M in Crypto Holdings

Popular messaging app Telegram has found itself in the spotlight following the arrest of its CEO, Pavel Durov, on August 24. Amidst this turmoil, the company's 2023 financial statement has shed light on its significant involvement in the cryptocurrency space, revealing that Telegram held approximately $400 million in digital assets at the end of last year.

Despite generating a substantial revenue of $342.5 million in 2023, Telegram posted an operating loss of $108 million. Intriguingly, a Financial Times report suggests that about 40% of Telegram's revenues stemmed from digital asset-related activities, categorized under "integrated wallet" and "sale of collectibles."

The integrated wallet is a software program enabling users to store, send, receive, and trade crypto assets. The "sale of collectibles" refers to various digital items sold to users, including usernames and virtual phone numbers, with Telegram earning transaction fees.

The financial report also disclosed that Telegram boasted around four million premium users by the close of 2023. This figure has since grown to over five million, highlighting the app's continued popularity despite recent controversies.

Telegram's global reach is evident in its user base, with India leading the world in app downloads in 2023, boasting 83.85 million users. The United States ranked third with 29.92 million downloads, according to Statista.

The arrest of Pavel Durov has affected Toncoin (TON) , the native coin of The Open Network, which was originally developed by Telegram. Following Durov's arrest at Le Bourget airport outside Paris on August 24, TON fell by over 20% amidst uncertainty over the impact on the TON ecosystem built on the messaging app. Durov faces a litany of charges including terrorism, trafficking, conspiracy, fraud, and money laundering.