Telegram Group, incorporated in the British Virgin Islands, has one of its main operating subsidiaries in the United Arab Emirates. The firm behind the messaging platform clocked in $342.5 million worth of revenue last year. However, it recorded an operating loss of $108 million.
The company's Profit and Loss statement brought to light the “gain on revaluation of digital assets.” It is interesting to note that a significant chunk of Telegram’s revenue was generated via digital asset-related activities.
In the financial statements, they were listed under the “integrated wallet” i.e. the software program that allows users to store, send, receive and trade crypto assets, and “sale of collectibles" sections.
The aforementioned line items amassed nearly $148 million in revenue. That translates to around 40% of Telegram's annual figure. A recent report brought to light,
“Usefully for Telegram, the events-after-the-reporting-date section of the accounts shows that it sold a big chunk of its Toncoin ahead of the price crash.”
With respect to the aggregate valuation of crypto assets in the portfolio per the consolidated financial statement, the report highlighted,
“Turning to the balance sheet, digital assets make up a big chunk of Telegram’s assets. Valued at nearly $400mn, tokens are far larger than its cash and cash equivalents.”
The company’s founder Pavel Durov was indicted by a French court last week. He was charged in France for enabling various forms of criminality and illicit activities in the app.
His arrest has not been received well by free speech advocates. Members from the crypto community — including Paolo Ardoino and Justin Sun — have publicly criticized the French government’s move.
