Reddit has recently disclosed its dive into the world of cryptocurrencies, joining the ranks of companies like MicroStrategy and Tesla. In a filing with the U.S. Securities and Exchange Commission (SEC), the social media platform revealed its investment in bitcoin (BTC) and ether (ETH) as part of its plan to go public on the New York Stock Exchange under the ticker symbol “RDDT.”
The move to invest in digital assets is a significant step for Reddit, reflecting a trend among companies embracing cryptocurrencies. Alongside its bitcoin and ether holdings, Reddit also mentioned acquiring ether and Polygon (MATIC) for certain virtual goods sales, hinting at potential future strategies in the crypto space.
While Reddit didn’t disclose the exact amount of tokens it holds, it emphasized that the value of these digital assets is relatively insignificant. However, it acknowledged the associated risks, including exchange risk and regulatory requirements.
This decision comes after Reddit’s lengthy regulatory process to become a publicly traded company. With its co-founder Steve Huffman expressing the intention to strengthen the company’s mission and community-driven ethos, Reddit aims to commence trading in March.
In its filing, Reddit reported a substantial increase in sales, reaching $804 million in 2023, and boasted total assets of $1.6 billion, with a significant portion held in cash.
The news of Reddit’s venture into cryptocurrencies briefly boosted prices of bitcoin and ether, signaling investor interest in the company’s move. Additionally, the Reddit-related token DONUT, representing community points from the r/ethtrader subreddit, experienced a notable surge.
Overall, Reddit’s entry into the crypto space underscores its commitment to innovation and community engagement, marking an important milestone in its journey as a publicly traded entity.
