Reddit Reveals Bitcoin and Ethereum Investments as It Prepares for IPO
Social platform Reddit has disclosed its investments in Bitcoin (BTC) and Ethereum (ETH) as part of its preparations to go public. The company made this revelation in a filing with the Securities and Exchange Commission. Reddit has also been experimenting with the use of Ether and Matic as a form of payment for the sale of virtual goods. Here are the key points from the filing:
BTC, ETH Investments
Reddit included Bitcoin and Ethereum in its balance sheet for its Initial Public Offering (IPO), investing some of its excess cash reserves in the two leading cryptocurrencies. The exact amount of the investment was not disclosed. Additionally, the platform purchased Polygon (MATIC) to facilitate payments for virtual goods.
ETH And MATIC As A Form Of Payment
Reddit has been testing blockchain technology by making purchases with ETH and MATIC to enable payments for specific virtual goods. In the filing, Reddit mentioned that they plan to continue using these cryptocurrencies as a payment method. However, they did not specify the amount or types of cryptocurrencies held by their product and engineering teams.
Reddit acknowledged the potential of blockchain-related technologies while emphasizing the uncertainty surrounding their long-term adoption by businesses and consumers.
No Stranger To Digital Assets
In recent years, Reddit has ventured into digital assets. In 2020, it launched Moon and Bricks tokens on Ethereum’s testnet. It has also engaged in NFT initiatives, collaborating with artists to sell and give away customized versions of the Snoo mascot on Polygon. However, the company recently shut down its blockchain-based rewards service due to scalability concerns.
Despite reporting a net loss of $90.8 million in 2023, Reddit’s revenue increased by 20.6% to $804 million compared to the previous year. The company’s valuation was valued at $10 billion after a funding round in 2021, but reports suggest it may now be worth half that amount.
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