Key Points
Reddit has announced that it holds Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC). This information was disclosed in the company’s initial public offering (IPO) filing with the U.S. Securities and Exchange Commission (SEC) on February 22.
Reddit’s Engagement with Cryptocurrencies
The company stated that it uses blockchain technology and crypto tokens for various purposes. This is part of its compliance with disclosure requirements as it prepares to go public under the ticker RDDT. Reddit has invested some of its surplus cash reserves in Bitcoin and Ethereum. It has also accepted Ethereum and Polygon as payment for certain virtual goods, a practice it may continue in the future.
Reddit’s product and engineering teams are leveraging cryptocurrencies for specific use cases. The social media giant confirmed its upcoming IPO, set for March, earlier this year. The company plans to offer 10% of its shares after being valued at $10 billion in 2021.
Reddit co-founder Steve Huffman expressed the company’s desire for users to have a sense of real ownership over the communities they create on the platform. He stated that becoming a public company would make this possible.
Reddit, a hub for blockchain discourse and crypto alpha, recorded over 850 million monthly active users last year. A CoinWire report indicated that 80% of Reddit’s crypto conversations in 2023 were positive. Despite this, the platform has faced some controversy in the crypto space. The site’s administrators received criticism for their decision to discontinue its blockchain-powered community points program.
