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News

Reddit discloses Bitcoin and Ether holdings in IPO filing

Friday 23 February 2024 13:57 CET | News

Reddit has disclosed that it invested part of its excess cash in bitcoin (BTC) and ether (ETH), making the firm one of the few companies that directly purchased digital assets. 

The social media platform submitted a filing with the US Securities and Exchange Commission (SEC) to go public on the New York Stock Exchange under the ticker symbol “RDDT.”

Reddit has disclosed that it invested part of its excess cash in bitcoin (BTC) and ether (ETH), making the firm one of the few companies that directly purchased digital assets.

As part of the filing, the social media platform disclosed that it invested part of its excess cash in Bitcoin and ether. Furthermore, the announcement also brought attention to the fact that Reddit had acquired ether and Polygon (MATIC) as a form of payment for sales of certain virtual goods. The social media platform further said it may continue this strategy in the future. 

Reddit and digital assets  

Reddit did not disclose how many tokens it holds but said in the filing that the net carrying value of the digital assets was immaterial. This move comes after a years-long process with regulators to become a publicly traded company. Reddit first filed a non-public draft with the SEC in December 2021. The company expects to begin trading in March 2024. 

Officials from Reddit stated that it is going public to advance its mission and become a stronger company. The social media platform's users have a sense of ownership over the communities they create on Reddit. The firm wants this sense of ownership to be reflected in real ownership, for users to be our owners. Becoming a public company makes this possible. 

According to the filing, Reddit had USD 804 million in sales in 2023, a figure higher than the previous year. The company also has a total of USD 1.6 billion in assets, including USD 1.3 billion in cash. 

Bitcoin and ether prices saw a slight bump on the news of the holdings before paring their gains.

Source: Link


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Keywords: digital assets, cryptocurrency, Bitcoin, Ethereum
Categories: DeFi & Crypto & Web3
Companies:
Countries: World
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