BlackRock, the world's largest asset manager, is participating in Telegram's $1.5 billion bond sale scheduled for May 28. The company plans to use the proceeds to buy back remaining debt.
BlackRock's Participation in the Bond Sale
Telegram is offering investors five-year bonds at a 9% yield. Existing backers including BlackRock and Abu Dhabi's Mubadala Investment Company are joining the fundraising effort. The proceeds will be used to redeem remaining debts from 2021 bonds maturing in March 2026.
Telegram's IPO Plans and Legal Issues
Telegram founder Pavel Durov has expressed confidence that the company is approaching profitability and is considering going public. However, his legal troubles in France, where he was arrested, complicate the timing of these plans. Despite these challenges, Telegram continues to receive valuations exceeding $30 billion from potential investors.
Rise of Institutional Crypto Investments
The bond sale occurs as traditional financial institutions increase cryptocurrency exposure. 47% of traditional hedge funds now have digital asset exposure, indicating a growing interest in this market segment. BlackRock has also increased its stake in MicroStrategy, now controlling 5% of the company's shares.
BlackRock's involvement in Telegram's bond offering highlights the growing interest of traditional finance in cryptocurrencies and innovative financial instruments. It is expected that new investors' subscriptions will help the company improve its financial standing and expedite IPO plans.
