Reddit
said
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
alongside
likes
of
Michael
Saylor’s
MicroStrategy
and
Elon
Musk’s
Tesla.
The
social
media
platform
submitted
a
filing
with
the
U.S.
Securities
and
Exchange
Commission
(SEC)
to
go
public
on
the
New
York
Stock
Exchange
under
the
ticker
symbol
“RDDT.”
As
part
of
the
filing,
the
social
media
platform
disclosed
that
it
invested
part
of
its
excess
cash
in
bitcoin
and
ether.
It
also
said
that
it
acquired
ether
and
Polygon
(MATIC)
“as
a
form
of
payment
for
sales
of
certain
virtual
goods.”
Reddit
said
it
may
continue
this
strategy
in
the
future.
The
firm
didn’t
disclose
how
many
tokens
it
holds
but
said
in
the
filing
that
the
net
carrying
value
of
the
digital
assets
was
“immaterial.”
“We
hold
cryptocurrencies
and
experiment
with
blockchain
technology,
which
may
subject
us
to
exchange
risk
and
additional
tax,
legal,
and
regulatory
requirements,”
the
filing
stated.
The
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
San
Francisco-based
company
expects
to
begin
trading
in
March.
“We
are
going
public
to
advance
our
mission
and
become
a
stronger
company,”
co-founder
Steve
Huffman
said
in
the
filing.
“Our
users
have
a
deep
sense
of
ownership
over
the
communities
they
create
on
Reddit.
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.”
According
to
the
filing,
Reddit
had
$804
million
in
sales
in
2023,
a
figure
much
higher
than
the
previous
year.
The
company
also
has
a
total
of
$1.6
billion
in
assets,
including
$1.3
billion
in
cash.
Bitcoin
and
ether
prices
saw
a
slight
bump
on
the
news
of
the
holdings
before
paring
their
gains.
Another
Reddit-related
token,
DONUT
–
the
token
that
represents
the
community
points
of
the
r/ethtrader
subreddit
–
surged
41%.
UPDATE
(Feb.
22,
21:14
UTC):
Updates
story
throughout
to
add
more
details
of
the
filing
and
context.