Reddit IPO Filing Reveals Bitcoin, Ethereum, and Polygon Holdings

Reddit has officially entered the cryptocurrency market, as detailed in its recent Initial Public Offering (IPO) submission to the U.S. Securities and Exchange Commission (SEC). On February 22, the social networking giant disclosed its holdings in major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC). This move is part of Reddit’s exploration of blockchain technology and crypto tokens, aligning with the necessary disclosures for its planned public listing under the ticker RDDT.

Reddit had over 850 million monthly active users last year and is an important platform for discussions related to blockchain and cryptocurrencies.

The company has diversified its financial assets by investing a portion of its excess cash reserves in Bitcoin and Ether. Additionally, it has accepted Ether and Matic in exchange for certain virtual goods, a practice it may continue in the future. According to the IPO documents, the transactions involving Ether and Matic from the sale of virtual goods did not significantly impact the financial statements for the years ending December 31, 2022, and 2023.

Reddit’s involvement with cryptocurrencies extends beyond investment. The site’s product and engineering departments are actively using these assets for particular applications, integrating them into Reddit’s broader ecosystem of virtual goods and services. This demonstrates Reddit’s commitment to leveraging new technologies to enhance user experiences on the platform.

With its IPO set for March, following a 2021 valuation at $10 billion, Reddit is poised to offer 10% of its shares to the public. Co-founder Steve Huffman highlighted the company’s aim to enable users to have actual ownership stakes in the communities they build on Reddit, stating, “Our users have a deep sense of ownership over the communities they create on 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.”