Telegram is facing a tough year financially despite bringing in $342.5 million in revenue for 2023 as it also reported an operating loss of $108 million.&nbsp; 
This news comes hot on the heels of Pavel Durov’s arrest in France, where he’s accused of not doing enough to control illegal content on the platform.&nbsp; 
With free speech debates raging, the financial figures paint a picture of a company increasingly reliant on cryptocurrency to keep the lights on. 
Telegram’s financials, recently leaked, show a heavy dependence on crypto transactions, which now make up a big slice of its income. Incorporated in the British Virgin Islands, with a major operating arm in the UAE, Telegram is clearly betting big on digital assets.&nbsp; 
The financial report, audited by PwC in Dubai, reveals that the company booked a modest gain of $500,000 from revaluing digital assets in its profit and loss (PnL) account. However, $86 million gain was recorded under other comprehensive income. 
Looking closer at Telegram’s earnings, it’s clear that two new revenue streams are propping up the numbers: the “integrated wallet” and “sale of collectibles.” Together, these account for more than 40% of the company’s revenue.&nbsp; 
The integrated wallet, introduced just last year, is a software tool that lets users store, send, receive, and trade crypto assets directly within the app. 
As of the end of 2023, the value of Telegram’s crypto assets was nearly $400 million, much higher than the company’s cash reserves. 
The company’s accounts also reveal some interesting related-party transactions. Pavel himself purchased $64 million in Telegram’s convertible bonds last year, showing a high level of personal investment in the company. 
He also bought $300,000 worth of Telegram Premium subscriptions for giveaways, using Toncoins to make the purchase. 
While the company is still 100% owned by Durov, it has also raised over $2.3 billion through convertible bonds from some big players—sovereign wealth funds, hedge funds, and tech-focused investors. 
Whether or not that strategy will be enough to counterbalance the significant losses remains to be seen.

Telegram posts $342.5 million revenue but faces $108 million loss

Cryptopolitan_News

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