- Telegram reports $870M revenue growth as Toncoin losses pressure earnings
- Toncoin crash forces Telegram to sell $450M in crypto assets
- Cocoon Network launch highlights deeper TON strategy amid IPO uncertainty
Telegram returned to market focus after strong revenue growth collided with crypto losses and unresolved financing pressure, as the messaging platform continues evaluating a potential initial public offering. According to the Financial Times, Telegram generated $870 million in operating revenue during the first half of 2025, representing a 65% increase from $525 million reported in the comparable period last year.
A sizeable share of revenue came from blockchain related arrangements, with around $300 million linked to exclusivity agreements connected to services built around Toncoin. However, rising income did not translate into profitability, as Telegram reported a net loss exceeding $220 million, reversing a $334 million profit from the prior year.
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Toncoin volatility hits profitability
Crypto market weakness played a central role in the earnings reversal, as Toncoin lost 69% of its value during 2025, according to CoinGecko data referenced in the report. As a result, Telegram wrote down the value of its Toncoin holdings, with those adjustments erasing a significant portion of operating gains.
Additionally, Telegram reduced exposure through asset sales, selling more than $450 million worth of Toncoin during the year to date. That volume represented nearly 10% of Toncoin’s $4.6 billion market capitalization, highlighting efforts to stabilize the balance sheet.
Bond exposure raises financing concerns
Beyond crypto losses, Telegram faced challenges tied to its debt structure, as $500 million of its bonds remain frozen in Russia’s central securities depository. The frozen bonds stem from a 2021 issuance held by Russian investors, with the freeze linked to Western sanctions, according to sources cited by the Financial Times.
Telegram responded by distancing itself from the issue, stating that its 2025 bond offering excluded Russian participation entirely. It also emphasized that operations do not rely on Russian capital, explaining that bond repayments pass through international intermediaries.
Cocoon Network signals deeper TON strategy
Separately, Telegram’s founder expanded the company’s blockchain ambitions by introducing the Cocoon Network at the Blockchain Life 2025 conference in Dubai. The development was reported by 36Crypto in October, with Cocoon described as a decentralized compute network built on the TON blockchain.
The system focuses on privacy driven AI computing and enables confidential processing while keeping all data encrypted during computation. Hardware providers can contribute GPU power to the network and earn rewards paid in TON tokens.
Developers access computing capacity by paying in the same token, reinforcing TON’s role across Telegram linked services.
IPO outlook clouded by legal scrutiny
Despite these initiatives, uncertainty remains around public listing plans, even as Telegram issued $1.7 billion in convertible bonds backed by existing institutional investors. The company also bought back most bonds maturing in 2026, with those actions aimed at simplifying liabilities ahead of any listing.
Meanwhile, regulatory pressure persists, as Telegram CEO Pavel Durov remains under formal investigation in France over alleged platform compliance failures. During discussions with bondholders, the company said it continues cooperating with authorities and indicated further clarity is required before advancing IPO plans.
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