Telegram held $400M in digital assets by end of 2023: report

Key Points

• About 40% of Telegram’s revenue was generated through digital asset activities
• The majority of digital asset revenue came from its “integrated wallet” services and sales of digital collectibles.

Leading messaging app Telegram had $400 million in digital assets at the end of last year, according to its 2023 financial statement. This latest development comes as its founder, Pavel Durov, faces arrest in Paris.

Telegram, founded in the British Virgin Islands and with a large subsidiary in the United Arab Emirates, reported revenue of $342.5 million for 2023, but also struggled with an operating loss of $108 million.

Interestingly, around 40% of Telegram’s revenue was generated through digital asset-related activities. The majority of digital asset revenue came from its “integrated wallet” services and the sale of digital collectibles.

The app offers an “integrated wallet” feature that allows users to store, send, receive, and trade cryptocurrencies, which contributes significantly to its revenue. Additionally, Telegram sells various collectibles, including usernames and virtual phone numbers. The company facilitates these transactions and earns fees, making digital assets a core component of its business model.

In 2022, the company introduced a feature that allows Telegram users to send TON coins directly within Telegram chats without charging transaction fees to users. Toncoin is a cryptocurrency created by Telegram in 2018.

According to a report by the Financial Times, Telegram’s approach to accounting for these digital assets follows the guidelines under IAS 38 – Intangible Assets. These assets are initially recorded at cost and subsequently measured at fair value less any accumulated impairment losses. In cases where fair value exceeds cost, gains are recorded as ‘Revaluation Surplus’ within equity, while losses above cost are reported as profit or loss.

The platform’s financial statement showed that Telegram’s premium subscription service is growing steadily. At the end of 2023, the app had around four million premium users, a number that has since risen to over five million. Early data from 2024 shows that Telegram recorded $11.66 million in in-app revenue in its first two months, contributing to the app’s total revenue stream, which has brought in over $4 billion since its inception.

Pavel Durvo is reportedly accused of terrorism, human trafficking, conspiracy, fraud and money laundering, among other charges. He was brought before the court on August 28. Earlier this week, a Paris court accused him of complicity in the distribution of child sexual abuse images, along with other alleged offenses on the Telegram app.