Social media company Reddit revealed that it has invested in and otherwise holds various cryptocurrencies on Feb. 22.
Reddit included that information in a filing with the U.S. Securities and Exchange Commission (SEC). The filing primarily indicates that it intends to run an IPO and list shares on the New York Stock Exchange (NYSE) as “RDDT.”
In one section of the filing, Reddit stated that it has invested a portion of its excess cash reserves in two cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH).
Reddit also said that it holds Ethereum (ETH) and Polygon (MATIC) tokens from the sale of virtual goods. Nevertheless, it suggested these earnings were minimal, with amounts “not material for the years ended December 31, 2022 and 2023.”
The social media company additionally said that it has acquired and holds cryptocurrencies for the use of its product and engineering teams. It did not identify any specific cryptocurrencies held for this purpose.
Reddit said that all of its crypto investments for treasury purposes are limited to Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies that the SEC and other agencies are likely to identify as non-security assets. Some firms have faced action from the SEC for dealing in crypto assets in recent years.
Reddit’s current crypto efforts
Reddit has been involved with crypto for some time. The company notably provides cryptocollectibles or NFTs called CryptoSnoos featuring the company’s mascot.
Reddit’s /r/cryptocurrency subreddit notably introduced a crypto token called MOONs as a user points program circa May 2020. MOONs gained popularity in September 2023 as various exchanges listed the token. The subreddit discontinued the program in October 2023, causing a sudden price drop followed by a recovery in November. MOONs continue to trade on various exchanges.
Reddit co-founder Alexis Ohanian, meanwhile, has formed a $200 million initiative with the blockchain firm Polygon to focus on Web3 and social media development.
Though it is unclear whether Reddit will expand its crypto efforts, the firm has endorsed crypto broadly. In the latest filing, it said that it believes that “cryptocurrencies and blockchain … have significant potential.” It nevertheless acknowledged risks around the changing popularity and value of cryptocurrency, as well as potentially illegal uses and legal uncertainties.
