BlackRock Joins Telegram's $1.5 Billion Bond Sale as Crypto Investments Accelerate
BlackRock, the world's largest asset manager, is participating in Telegram's $1.5 billion bond sale scheduled for May 28, according to The Wall Street Journal. The crypto-friendly messaging platform 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.
Telegram plans to use proceeds to buy back remaining debt from bonds issued in 2021, which mature in March 2026. New investors include US hedge fund Citadel, expanding the sale beyond current bondholders. The bond offering provides investors access to shares in a potential Telegram IPO at a 20% discount.
BlackRock's Expanding Cryptocurrency Strategy
BlackRock's participation reflects its growing commitment to digital assets. The firm recently recommended that interested investors allocate up to 2% of their portfolios to Bitcoin, according to Reuters. BlackRock's iShares Bitcoin Trust has attracted over $51 billion in assets since launching.
99Bitcoins reports that BlackRock now considers Bitcoin a "strategic asset" rather than speculative investment. The asset manager's crypto holdings total over $57 billion across Bitcoin and Ethereum positions.
The firm has also increased its stake in MicroStrategy to 5%, representing approximately 11.2 million shares. This connects BlackRock to one of the largest corporate Bitcoin holders, according to Traders Union.
Telegram's IPO Plans Face Legal Challenges
Telegram founder Pavel Durov announced the company approaches profitability and considers going public. Access IPOs reports that Durov values an IPO as a way to "democratize access to Telegram's value." The company has received valuations exceeding $30 billion from potential investors.
However, Durov's legal troubles in France have complicated IPO timing. French authorities arrested him in August 2024 on charges related to criminal activities on the platform. Reuters confirmed that while he was allowed to leave France temporarily in March 2025, the investigation continues.
Ctech notes that Telegram suspended its planned 2026 IPO following Durov's arrest. The company's bonds traded at elevated yields of 17% during the uncertainty before stabilizing at current levels.
Institutional Crypto Adoption Accelerates
The Telegram bond sale occurs as traditional financial institutions increase cryptocurrency exposure. Stuarts Law reports that 47% of traditional hedge funds now have digital asset exposure, up from 29% in 2023.
Citadel Securities recently announced plans to become a cryptocurrency liquidity provider on major exchanges. Blockhead reports the market-making giant will focus on exchanges like Coinbase, Binance, and Crypto.com.
Corporate bond markets show increased appetite for technology companies. Breckinridge Capital notes that corporate spreads remain tight at 80 basis points, with strong investor demand supporting valuations.
The combination of regulatory clarity and institutional participation continues driving cryptocurrency market growth. Bitcoin reached all-time highs of $108,786 in January 2025 before experiencing volatility amid policy uncertainty.
Related Reading on BTC Peers
For deeper insights into cryptocurrency policy developments, read Global Bitcoin Policy Index on BTC Peers. This comprehensive analysis examines regulatory frameworks across major jurisdictions and provides data-driven assessments of policy trends affecting Bitcoin adoption. The article offers valuable context for understanding how governmental approaches influence institutional investment decisions like BlackRock's cryptocurrency strategy and corporate financing decisions such as Telegram's bond offering.
