Social Media Giant Reddit Holds Bitcoin and Ethereum for ‘Treasury Purposes,’ According to SEC Filing
Social media giant Reddit holds both Bitcoin (BTC) and Ethereum (ETH) in its treasury, according to a filing with the U.S. Securities and Exchange Commission (SEC).
The company submitted an S-1 registration statement to the securities regulator on Thursday related to its planned initial public offering (IPO).
In the document, Reddit says it has invested some of its cash reserves in the top two crypto assets for “treasury purposes.” The company also notes that it has acquired ETH and MATIC, the native asset of blockchain scaling solution Polygon, as a form of payment for sales of certain virtual goods. It has also purchased other crypto assets for “specific uses” for its product and engineering teams.
Reddit acknowledges that crypto prices can be highly volatile and notes that any of the company’s digital asset investments require approval from its board of directors. The social media giant also notes that its treasury investments will remain limited to BTC, ETH and other cryptocurrencies that regulators identify “as likely not being a security.”
Reddit also acknowledges the unpredictable nature of the digital asset sector overall.
“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain.”
Reddit aims to list its Class A common stock on the New York Stock Exchange (NYSE) under the ticker symbol “RDDT.” Reuters, citing “people familiar with the matter,” reports that the company is targeting an IPO launch in March.
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Author: Conor Devitt
