Reddit acquired major cap cryptocurrencies, including Bitcoin, for a variety of reasons, and said it has been receiving payments in digital assets for limited services since at least 2022.
Social network Reddit owns Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC), according to an initial public offering (IPO) filing filed with the U.S. Securities and Exchange Commission on February 22nd. The company said it is experimenting with blockchain technology and crypto tokens. It complies with disclosure requirements as it plans to go public under the ticker RDDT.
We have invested a portion of our surplus cash in Bitcoin and Ether, and have also acquired Ether and Matic as payment methods for the sale of certain virtual goods, which may continue to be the case. Ether and Matic received from sales of virtual goods were not material for the years ended December 31, 2022 and 2023.
IPO SEC application
The company also said its product and engineering teams are leveraging cryptocurrencies for specific use cases. Earlier this year, the social media giant confirmed an IPO scheduled for March. Reddit plans to sell 10% of its stock in 2021, valued at $10 billion.
Our users have a deep sense of ownership in the communities they create on Reddit. We want this sense of ownership to be reflected in actual ownership. For users to become our owners. Becoming a public company makes this possible.
Steve Huffman, Reddit Co-Founder
The social network is a hub for blockchain discussion and crypto alpha, with more than 850 million monthly active users last year. According to a report by CoinWire, 80% of conversations about cryptocurrencies on Reddit in 2023 were positive.
However, the platform has not been without crypto controversy, as the site's administrators received backlash for their decision to end their blockchain-powered community points program.
