Reddit Holds Bitcoin, Ethereum, and Polygon, Plans to Go Public
Social network Reddit has revealed in its initial public offering (IPO) filing with the U.S. SEC that it holds major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC). The company stated that it has acquired these digital assets for various reasons and has even received payments in crypto for limited services since 2022. Reddit also disclosed that it experiments with blockchain technology and crypto tokens, aligning with disclosure requirements as it prepares to go public under the ticker RDDT.
We invested some of our excess cash reserves in Bitcoin and Ether and also acquired Ether and Matic as a form of payment for sales of certain virtual goods, which we may continue to do in the future. Ether and Matic received from the sales of virtual goods was not material for the years ended December 31, 2022 and 2023.
IPO SEC filing
Additionally, Reddit mentioned that its product and engineering teams utilize cryptocurrencies for specific use cases. The social media giant is set to launch its IPO in March, offering 10% of its shares after being valued at $10 billion in 2021. Reddit’s co-founder, Steve Huffman, expressed the desire for users to have a sense of ownership by becoming shareholders through the company going public.
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.
Steve Huffman, Reddit co-founder
With over 850 million monthly active users, Reddit serves as a prominent platform for blockchain discussions and crypto-related content. In 2023, 80% of the platform’s crypto conversations were reportedly positive. However, Reddit has faced criticism regarding its decision to discontinue its blockchain-powered community points program.
Hot Take: Reddit Embraces Crypto and Prepares for IPO
Reddit’s disclosure of holding Bitcoin, Ethereum, and Polygon in its IPO filing showcases the platform’s growing interest in cryptocurrencies. By experimenting with blockchain technology and accepting crypto payments, Reddit is positioning itself as a player in the crypto space. The company’s forthcoming IPO aims to give users a sense of ownership by allowing them to become shareholders.
With its massive user base and positive sentiment towards crypto, Reddit has the potential to influence and shape the industry further. However, controversies surrounding its blockchain-powered community points program highlight the challenges and scrutiny that come with integrating cryptocurrencies into a mainstream platform.
As Reddit progresses towards its IPO and continues to explore blockchain applications, it will be interesting to see how it navigates the evolving crypto landscape and balances user expectations with regulatory compliance.
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