Reddit said it has acquired large-cap cryptocurrencies, including Bitcoin, for various reasons and has received digital asset payments for limited services since at least 2022.
Social network Reddit owns Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC) according to its initial public offering (IPO) filing with the US SEC on February 22. The company said it is experimenting with blockchain technology and crypto tokens, complying with disclosure requirements as it plans to go public under the ticker RDDT.
We have invested part of our excess cash reserves in Bitcoin and Ether and have also acquired Ether and Matic as payment for the sale of certain virtual goods, which we may continue to do in the future. Ether and Matic received from the sale of virtual goods were not material for the years ended December 31, 2022 and 2023.
SEC IPO Filing
The company also said its product and engineering teams leverage cryptocurrencies for specific use cases. Earlier this year, the social media giant confirmed its next IPO is planned for March. Reddit plans to offer 10% of its shares after being valued at $10 billion in 2021.
Our users have a deep sense of belonging in the communities they create on Reddit. We want this feeling of belonging to be reflected in true ownership; so that our users are our owners. Becoming a public company makes this possible.
Steve Huffman, co-founder of Reddit
The social network is a hub of blockchain discourse and crypto alpha, with over 850 million monthly active users recorded last year. A report from CoinWire states that 80% of users' Reddit crypto conversations in 2023 were positive.
However, the platform has not been without crypto controversy as site administrators received backlash following the decision to end its blockchain-powered community points program.