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Financial Times: “Cryptocurrency Matters As Much to Telegram’s Bottom Line As Messaging”

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Financial Times: “Cryptocurrency Matters As Much to Telegram’s Bottom Line As Messaging”

The Financial Times (FT) recently published a report detailing the financial state of Telegram, the messaging app founded by Russian-born billionaire Pavel Durov, and cryptocurrency’s significant role in its revenue stream.

According to the FT report by Robert Smith and Hannah Murphy, which was published on August 30, Telegram’s 2023 financials, which the publication obtained, reveal that the company generated $342.5 million in revenue while incurring a substantial operating loss of $108 million. This financial report, signed by Durov and audited by PwC’s Dubai branch, highlights the increasing importance of cryptocurrency to Telegram’s business model.

A noteworthy aspect of Telegram’s revenue is its reliance on digital assets, particularly Toncoins, which were originally developed by Telegram but are now maintained by an independent open-source community. The FT report emphasizes that over 40 per cent of Telegram’s revenue comes from two specific business lines: the “integrated wallet” and the “sale of collectables,” both of which involve transactions in Toncoins. These figures underscore the extent to which cryptocurrency transactions have become intertwined with Telegram’s financial performance.

The FT also sheds light on the complexities involved in accounting for these digital assets. Telegram’s financial statements reveal that the company recorded a modest gain of $500,000 through its profit and loss (PnL) statement but a much larger gain of $86 million through other comprehensive income, all related to the revaluation of digital assets. According to the FT, these gains are the result of revaluations of Telegram’s cryptocurrency holdings, reflecting the volatile nature of the digital asset market.


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Moreover, the FT notes that Telegram’s balance sheet is heavily weighted with digital assets, which are valued at nearly $400 million, far surpassing the company’s cash and cash equivalents. This heavy reliance on cryptocurrency presents both opportunities and risks for Telegram, particularly in light of the recent arrest of Durov in France for allegedly failing to control criminal content on the platform. The FT suggests that this arrest has had an immediate impact on the value of Toncoins, as reflected in the sharp decline in their price following the news.

In addition to cryptocurrency-related revenue, the FT report reveals that Durov himself played a significant role in Telegram’s financial activities. Last year, Durov purchased $64 million worth of Telegram’s convertible bonds and also bought $300,000 worth of Telegram Premium subscriptions, using Toncoins as payment. The FT indicates that these transactions highlight the close ties between Durov’s personal finances and the company’s operations.

The FT report also touches on the legal and regulatory challenges facing Telegram, particularly in relation to its commitment to user privacy. Telegram’s core value of protecting user privacy has made it popular among users, but it has also attracted scrutiny from authorities in various countries. The FT highlights a warning in Telegram’s financial statements that the company’s operations could be affected by changes in legal and regulatory frameworks, a concern that seems particularly relevant in light of Durov’s recent arrest.

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Finally, the FT raises questions about Telegram’s valuation, which Durov earlier this year claimed to be “$30bn-plus.” The report suggests that this valuation might be optimistic, given the company’s reliance on cryptocurrency and the substantial operating expenses it incurs relative to its revenue. The FT concludes that while Telegram has successfully leveraged cryptocurrency to bolster its revenue, the company faces significant challenges in navigating the complex and rapidly evolving regulatory landscape.

Featured Image via Pixabay

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AMBER Mining launches new cloud mining program for cryptocurrency enthusiasts to earn free Bitcoin

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AMBER Mining launches new cloud mining program for cryptocurrency enthusiasts to earn free Bitcoin

London, UK , Jan. 04, 2025 (GLOBE NEWSWIRE) —

Amber Mining has emerged as a game-changer in the cloud mining industry with its announcement of FCA-regulated mining contracts. This significant development ensures that cryptocurrency investors can participate in mining with greater transparency and security, backed by the stringent oversight of the UK Financial Conduct Authority (FCA).

A Milestone in Cloud Mining

Amber Mining’s FCA compliance marks a pivotal shift in the cryptocurrency mining landscape. With this move, the platform addresses common industry concerns such as fraud and lack of accountability, creating a reliable space for investors to explore cryptocurrency mining.

Amber Mining CEO stated:
“The introduction of FCA-regulated contracts underscores our commitment to protecting investors while driving innovation in the cryptocurrency mining space. We aim to set a new standard for security and trust in the industry.”

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Features of Amber Mining

Amber Mining combines cutting-edge technology and strict compliance measures to offer unparalleled services to its users. Key features include:

  • Global Operations: Over 100 mining centers worldwide ensure extensive service coverage.
  • Advanced Hardware: Partnerships with manufacturers like Bitmain, Canaan, and Nvidia ensure efficient mining operations.
  • High Hashrate Management: The platform operates with over 10 EH/s capacity, delivering significant mining efficiency.
  • User-Friendly Design: The platform eliminates the need for users to manage hardware or software, making it ideal for both novice and experienced miners.
  • Expert Support: A dedicated team of blockchain engineers ensures smooth technical operations.
  • Consistent Earnings: Earnings are automatically credited every 24 hours for a stable income stream.

Getting Started with Amber Mining

Using the Amber Mining platform is straightforward:

  1. Register on the Platform: Sign up in minutes and receive $12 immediately as a welcome bonus.
  2. Choose a Mining Contract: Select from various tailored contracts based on your budget and goals. Contracts range in duration and profitability, catering to diverse investment strategies.
  3. Start Profiting: Activate your chosen contract and let the system manage the mining process. Track your earnings through the platform’s intuitive dashboard and withdraw your profits as needed.

Amber Mining Contract Options

Below is a summary of the available contracts:

Contract Price Contract Duration Daily Interest Rate Total Income (Principal + Profit)
$12 1 Day 10% $12 + $1.2
$150 2 Days 4% $150 + $12
$500 5 Days 1.55% $500 + $38.75
$1,000 4 Days 1.58% $1,000 + $63.2
$2,000 10 Days 1.6% $2,000 + $320

Conclusion

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Amber Mining’s FCA-regulated contracts set a new benchmark in the cloud mining industry. By offering transparency, regulatory assurance, and cutting-edge technology, the platform empowers investors to navigate the complexities of cryptocurrency mining confidently. With global reach, user-friendly operations, and consistent earnings, Amber Mining is poised to become a leading force in the cryptocurrency mining sector.

For more details, please visit https://ambermining.com

Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.


            
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HIVE Digital’s move highlights Texas’ renewed rise as a crypto hub

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HIVE Digital’s move highlights Texas’ renewed rise as a crypto hub

HIVE Digital, a publicly traded cryptocurrency mining firm, announced this week that it will relocate its headquarters from Vancouver to San Antonio, citing support from President-elect Donald Trump’s administration for the crypto industry’s growth as a key factor in the decision.

The company described the move as a strategic response to Trump’s re-election, highlighting the administration’s pro-Bitcoin stance and its focus on innovation and regulatory frameworks for the cryptocurrency ecosystem.

“The United States offers a competitive and business-friendly regulatory environment, along with access to capital markets,” the company said. “Texas, in particular, stands out for its supportive business climate, energy infrastructure, and skilled workforce.”

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120% growth! Bitcoin outperformed most asset classes last year — will the momentum sustain for cryptos in 2025? | Stock Market News

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120% growth! Bitcoin outperformed most asset classes last year — will the momentum sustain for cryptos in 2025? | Stock Market News

Bitcoin, the world’s biggest cryptocurrency, demonstrated 120 per cent growth in 2024, outperforming most asset classes. However, its record-breaking run slowed at the end of 2024 and into the New Year 2025, leading to the token’s first monthly drop since August 2024, according to a Bloomberg report.

Bitcoin slipped 3.2 per cent in December as investors began cashing profits following the sustained rally in the lead-up to the inauguration of Donald Trump as the 47th president of the United States on January 20, 2025. 

Bitcoin Outperformed Gold, Equities

The Trump-backed crypto fever pushed Bitcoin to an all-time high of $108,315 mid-December before US Federal Reserve decisions cooled the high. Still, the cryptocurrency has notched a 120 per cent gain through 2024, outperforming gold and global equities, as per the report. Bitcoin has also more than doubled in 2023 in a “comeback,” the report added. Interestingly, cocoa was among the few assets that beat even the crypto comeback.

And while investors and market watchers largely dipped into the Bitcoin pie, other crypto tokens also saw an influx. Meme-favourite Dogecoin rose 253 per cent—for example, a $10,000 investment in the token would have netted one $35,345 in return.

New All-time Highs?

  • Edul Patel, CEO and co-founder, Mudrex, told Livemint that the outlook for 2025 is “even more promising” than 2024 due to the pro-crypto leadership at the SEC, CFTC, and the US White House working towards crypto-friendly regulations. “With better regulatory clarity from the US, the institutional interest in crypto is set to get stronger, bringing in higher inflows into the ETFs. On the other hand, countries like China, Canada, EU nations, and the Middle East are easing restrictions, creating a healthy environment for wider crypto adoption. These developments create a strong pipeline for the crypto industry, making 2025 a critical year in taking crypto investing mainstream. As adoption increases and the market matures, Bitcoin could potentially reach $150,000 by the end of the year, creating new milestones for the industry,” he added.
  • Dr Sujata Seshadrinathan, Director of IT and Process, Basiz Fund Services, told Livemint she sees expectations from analysts for Bitcoin reaching life-time highs of $190,000-$200,000 in 2025. The Indian markets, she felt will see some large crypto trading platforms re-entering with due compliance to relevant government regulations. “Overall, 2025 could see regulatory clarity and protocols being established for the use of cryptocurrencies. This will mean moderation and controlled fluctuations in prices, with investor protection and institutional adoption moving well ahead on an upward trajectory,” Dr Seshadrinathan said.
  • Kumar Gaurav, founder of Cashaa, speaking to Livemint echoed sentiments of Bitcoin surpassing the $150,000 level. “In 2025, I expect Bitcoin to conservatively surpass at least $150,000, fueled by increased institutional adoption, the approval of spot ETFs, and its strengthening role as a hedge against economic uncertainties,” he said. Gaurav also anticipates growth in the broader crypto markets and an increase in real-world applications. “I believe 2025 will mark a transformative year for crypto, positioning it as a cornerstone of the global financial system and accelerating mass adoption,” he stated.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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