BlackRock, a titan in the global investment landscape and a heavyweight Bitcoin holder, is making headlines once again. This time, it’s stepping into the world of crypto-backed bonds. Reports suggest that BlackRock, alongside Abu Dhabi’s Mubadala, is backing Telegram’s ambitious $1.5 billion bond sale, which is set to unfold today, May 28, 2025. The bond issue by the crypto-friendly messaging service is stirring interest, promising investors a tantalizing 9% yield.
A Strategic Play by Telegram
This financial maneuver by Telegram isn’t just about raising capital—it’s a strategic play to manage its financial obligations. The proceeds from this bond sale will be channeled toward buying back debt from bonds issued back in 2021, maturing in March next year. This move comes as Telegram seeks to strengthen its financial position and potentially pave the way for an initial public offering (IPO).
The allure of Telegram’s bonds isn’t just in the yield. Investors are also being dangled the carrot of purchasing shares at a 20% discount in any future IPO—a compelling prospect for those with a long-term view. Sources indicate that Citadel, a prominent US hedge fund, might also join the ranks of Telegram’s backers, signaling broad-based interest in this financial narrative.
Industry Giants and New Entrants
BlackRock’s involvement underscores the growing intersection between traditional finance and the digital asset ecosystem. As one of the largest holders of Bitcoin, BlackRock’s participation signals a vote of confidence in Telegram’s strategy and the broader crypto market. According to crypto analyst Jenna Li, “BlackRock’s move is a clear indicator of how institutional investors are increasingly comfortable with crypto-adjacent investments.” This trend mirrors the actions of other major players, as seen in Metaplanet’s recent $25M bond issuance to buy more Bitcoin.
The backdrop to this bond issuance is not without its twists. While BlackRock and Mubadala are established stakeholders, the entry of new players like Citadel could inject fresh dynamics into Telegram’s financial ecosystem. This expansion of interest underlines the attractiveness of Telegram’s offering, especially against the backdrop of its previous bond sales that laid the groundwork for this current endeavor.
Dubai Beckons for Telegram’s CEO
Adding a touch of intrigue, Telegram’s CEO, Pavel Durov, has announced a visit to Dubai scheduled for the first week of June. His statement on X hinted at “good news ahead,” a cryptic message that has left market watchers speculating. This visit is noteworthy, given Durov’s recent legal challenges in Europe. His ability to maneuver through complex legal and business landscapes continues to captivate industry observers.
Durov’s impending Dubai trip is seen by some as a strategic move to bolster confidence among Middle Eastern investors—an essential component given the region’s increasing influence in tech and finance. The backdrop of Durov’s legal saga in France, where he was temporarily detained, adds a layer of complexity to his public appearances.
The Road Ahead
As Telegram navigates this bond sale, the broader implications for the crypto and tech industries are significant. The company’s ability to secure substantial backing from both established and new investors will likely be a barometer for future financial strategies within the tech sector. This aligns with broader trends in the industry, such as Strategy’s $84B Bitcoin expansion plan backed by Wall Street analysts.
However, questions linger about the sustainability of such high-yield offerings and the potential impact on Telegram’s financial health. The crypto market’s inherent volatility, coupled with evolving regulatory landscapes, could pose challenges.
In the coming weeks, all eyes will be on Telegram and Durov’s announcements in Dubai. Investors and industry insiders alike will be keen to see if this bond sale and subsequent developments will indeed herald the “good news” that Durov has hinted at. As the story unfolds, the intersection of traditional finance with the dynamic world of crypto continues to reshape the financial narrative.
Source
This article is based on: BlackRock to join Telegram’s $1.5B bond sale: WSJ
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
