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February 23, 2024 by Lipika Deka
Reddit, a social media forum, disclosed that it has allocated a portion of its surplus cash reserves to Bitcoin and Ethereum and used ETH and MATIC as payments for sales of certain virtual goods, according to the S-1 filing. But as of December 31, 2023, it holds no other digital assets other than Bitcoin and Ethereum for financial management purposes.
“Our investments in cryptocurrencies for treasury purposes are limited to Bitcoin, Ether, and any other cryptocurrency that the SEC, Commodities Futures Trading Commission, or high-ranking members of the staff of such regulatory bodies may, through public statements or guidance, identify as likely not being a security,” it stated.
The social media giant boasts visits from an average of 76 million people daily. Going public with the crypto holdings revelation would not only boost capital but also offer liquidity and facilitate transparency.
We are going public to advance our mission and become a stronger company. We hope going public will provide meaningful benefits to our community as well. Our users have a deep sense of ownership over the communities they create on the platform. This sense of ownership often extends to all of 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. With this in mind, we are excited to invite the users and moderators who have contributed to Reddit to buy shares in our IPO, alongside our investors.
Reddit Joins MicroStrategy & Tesla
The S-1 form is the first step in the registration process for an IPO. Although Reddit had previously filed a similar form, albeit discreetly, the new disclosure of crypto currencies has generated quite a buzz in the community. Many in the community have lauded the move, given Reddit’s past cautious stance towards digital assets.
Disclosing crypto holdings was a bold move for Reddit, even though the amount held has not been specified. The S-1 filing potentially signals mainstream crypto acceptance. With this, Reddit joins the likes of business intelligence firm MicroStrategy and electric car maker Tesla, which hold Bitcoin & Ethereum.
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