In a recent filing with the U.S. Securities and Exchange Commission (SEC), social media giant Reddit disclosed its ownership of major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC). The revelation comes as part of the company’s preparations to go public under the ticker symbol RDDT.
According to the initial public offering (IPO) filing on February 22, Reddit detailed its foray into the world of cryptocurrencies. The platform confirmed holding Bitcoin and Ethereum as investments, citing the utilization of excess cash reserves for this purpose. Additionally, Reddit acknowledged acquiring Ether and Matic as forms of payment for specific virtual goods, a practice the company has engaged in since at least 2022.
The cryptocurrency holdings, as per Reddit’s statement, were used as an experimental move to explore blockchain technology and crypto tokens. The company clarified that the Ether and Matic received from the sales of virtual goods did not have a significant impact on its financials for the years ended December 31, 2022, and 2023.
In the IPO filing, Reddit expressed its commitment to compliance with disclosure requirements and emphasized the ongoing experimentation with cryptocurrencies by its product and engineering teams for specific use cases.
Despite facing some controversy, particularly regarding its decision to sunset the blockchain-powered community points program, Reddit has maintained its status as a significant hub for blockchain discourse and crypto-related discussions. With over 850 million monthly active users recorded in the previous year, the platform stands as a major player in the crypto space.
Steve Huffman, Reddit’s co-founder, highlighted the community-driven nature of the platform, stating, “Our users have a deep sense of ownership over the communities they create on Reddit. We want this sense of ownership to be reflected in real ownership; for our users to be our owners. Becoming a public company makes this possible.”
As Reddit gears up for its anticipated IPO in March, where it plans to offer 10% of its shares after being valued at $10 billion in 2021, the crypto community watches closely to see how the platform’s engagement with blockchain and cryptocurrency will evolve.
