Crypto News– Reddit has recently disclosed that it has invested a portion of its surplus cash into bitcoin (BTC) and ether (ETH), marking the company as one of the few to directly engage in the purchase of digital assets, following the likes of Michael Saylor’s MicroStrategy and Elon Musk’s Tesla.
Reddit IPO Filing Reveals Ownership of Bitcoin and Ether
The social media giant has submitted its filing to the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO) on the New York Stock Exchange under the ticker symbol “RDDT.” Within this filing, Reddit revealed its investment in bitcoin and ether, along with its acquisition of ether and Polygon (MATIC) as a means of payment for certain virtual goods sales. Reddit has also indicated its potential continuation of this investment strategy in the future.
Although the company did not specify the exact quantity of tokens held, it mentioned in the filing that the net carrying value of these digital assets was deemed “immaterial.”
The decision to invest in cryptocurrencies and explore blockchain technology was highlighted in the filing, acknowledging potential exchange risks and additional tax, legal, and regulatory obligations.
This move follows a lengthy regulatory process as Reddit sought to become a publicly traded entity. The company initially filed a non-public draft with the SEC back in December 2021.
Headquartered in San Francisco, Reddit anticipates commencing trading in March. Co-founder Steve Huffman expressed the company’s intention to go public as a means to advance its mission and bolster its overall strength. Huffman emphasized the deep sense of ownership that Reddit users have over the communities they create, extending that ownership ethos to the entirety of Reddit itself. Going public enables users to become stakeholders in the company.
According to the filing, Reddit reported sales of $804 million in 2023, a significant increase compared to the previous year. The company also boasts total assets amounting to $1.6 billion, including $1.3 billion in cash reserves.
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