Reddit buys Bitcoin, Ethereum, and MATIC, reveals new IPO filing with the SEC
Reddit's approach to crypto reflects a broader trend among tech companies exploring the potential of crypto.
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Reddit has officially submitted its S-1 with the Securities and Exchange Commission, marking a significant step towards its initial public offering. The social media giant disclosed in the filing that it has invested in crypto assets, including Bitcoin and Ether, and has also acquired Polygon’s MATIC.
“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,” the filing stated.
The company clarified that its crypto holdings did not add up to much money during the periods covered in the IPO paperwork.
“The net carrying value of our cryptocurrencies, which consisted primarily of Bitcoin and Ether, as well as all related cryptocurrency activity, was immaterial for the periods presented,” Reddit wrote in its S-1.
These investments are part of Reddit’s strategy to integrate blockchain technology into its operations and offer new forms of payment for virtual goods.
Despite these challenges, Reddit’s board of directors has approved investments in Bitcoin, Ether, and potentially other cryptocurrencies that are not deemed securities by regulatory authorities.
As of the end of 2023, Reddit’s Treasury investments in crypto were confined to Bitcoin and Ether. The company’s use of crypto extends beyond Treasury purposes, as its product and engineering teams also utilize these digital assets for specific applications.
Looking forward, Reddit is set to list on the New York Stock Exchange under the ticker symbol “RDDT.”
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