Telegram Raises Additional $850 Million; Doubles Funds Raised in ICO to $1.7 Billion

digitaltrends.com

A new U.S. Securities and Exchange Commission (SEC) filing revealed that message app service provider Telegram has successfully raised an additional $850 million by means of its initial coin offering (ICO) private sale.

Filed by Telegram founder Pavel Durov on Thursday, the Form D disclosure submitted before the SEC stated that the funds raised were “purchase agreements for cryptocurrency.”

The service provider revealed that it was able to raise, in late February, $850 million in funds during its initial ICO phase. This ICO was already at that time considered to be one of the biggest funds raised through a token sale to date.

The public document stated that “this $850,000,000 offering is in addition to the previous offering,” which remarkably indicates that the company successfully surpassed its initial target of $1.2 billion. This also indicated that the company was able to accumulate an astounding total of $1.7 billion.

Based on the Simple Agreement for Future Tokens (SAFT) framework, it is possible that the token sale is not over yet. The SEC filing also said that “The issuers may pursue one or more subsequent offerings.” Previously, there had been circulating rumors that Telegram plans to raise as much as $2.25 billion in funds.

While it did not reveal the number of participating investors, the Form D cited that only people or entities investing a minimum of $1 million were permitted to take part in the token sale.

The funds raised from the ICO pre-sale will be utilized in the creation of TON or the Telegram Open Network. The TON is an ambitious Blockchain project which seeks to decentralize various aspects of digital communication, from file sharing to browsing to transactions.

The SEC filing stated:

“The issuers intend to use the proceeds for the development of the TON Blockchain, the development and maintenance of Telegram Messenger and the other purposes described in the offering materials.”