Telegram : Colossal Losses Despite 400 Million Dollars In Crypto

Financial transparency is increasingly crucial for tech companies. Telegram has just released its 2023 financial report, revealing that the firm holds several hundred million dollars in cryptocurrencies. This announcement comes at a time when the messaging app, already under pressure for its links to the crypto world, must deal with the fallout from the arrest of its CEO, Pavel DUROV.

Telegram and Digital Assets: A Strategic Diversification?

Telegram’s 2023 financial report reveals a bold diversification strategy with $400 million in digital assets held at the end of the year. “We saw an opportunity in cryptos to strengthen our business model and offer additional services to our users,” the report reads. The company mentioned that nearly 40 % of its revenue, about $137 million, came from crypto-related activities, split between an “integrated wallet” and “collectibles sales.”

Despite this diversification strategy, Telegram incurred an operating loss of $108 million in 2023. This loss, coupled with revenues of $342.5 million, raises questions about the long-term viability of its crypto-based strategy. However, the company experienced an increase in its premium users, from four to five million, which potentially offset its operating losses. The report details the ways Telegram leverages its integrated wallet to facilitate crypto transactions and collectibles sales, which include digital items such as usernames and virtual phone numbers.

Public Companies Betting More and More on Cryptos

Cryptos are gaining more and more ground in the portfolios of publicly traded companies as they are now considered a strategic reserve asset. In just one year, the asset values of these big companies in Bitcoin have seen a spectacular increase, rising from $7.2 billion to $20 billion, an increase of nearly 200%.

A survey by Nickel Digital reveals that 75 % of institutional investors believe that public companies should include Bitcoin in their balance sheets, and 26 % support its use as a reserve asset. With only 1.6 % of the total Bitcoin supply held by these companies, the growth potential remains immense.

As only a small fraction of the total Bitcoin supply is held by publicly traded companies, the growth potential remains immense and hints at a future where cryptos could play an even more central role in companies’ financial strategies. Telegram embodies this transformation but will, in the short term, have to cope with the challenges it is currently facing, specifically its CEO’s arrest, and prove the long-term viability of its model amidst market uncertainties and regulatory pressures