Reddit Invests Excess Cash in Bitcoin and Ether, Plans to Go Public

According to CoinDesk, Reddit has invested part of its excess cash in bitcoin (BTC) and ether (ETH), joining the ranks of companies like MicroStrategy and Tesla that have directly purchased digital assets. 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.' In the filing, Reddit disclosed its investment in bitcoin and ether, as well as its acquisition of ether and Polygon (MATIC) as a form of payment for sales of certain virtual goods. The company may continue this strategy in the future, although it did not disclose the number of tokens it holds. The filing also stated that Reddit holds cryptocurrencies and experiments with blockchain technology, which may subject the company to exchange risk and additional tax, legal, and regulatory requirements. Reddit first filed a non-public draft with the SEC in December 2021 and expects to begin trading in March. Co-founder Steve Huffman said in the filing that going public would help advance the company's mission and make it stronger. According to the filing, Reddit had $804 million in sales in 2023, a significant increase from the previous year, and a total of $1.6 billion in assets, including $1.3 billion in cash. Bitcoin and ether prices experienced a slight bump on the news of the holdings before paring their gains, while the DONUT token, representing the community points of the r/ethtrader subreddit, surged 41%.