Social media giant Reddit has revealed that it holds Bitcoin (BTC) and Ethereum (ETH) in its treasury, according to a filing with the U.S. Securities and Exchange Commission (SEC).
Treasury Investments
In the S-1 registration statement submitted to the SEC on Thursday, Reddit stated that it has invested some of its cash reserves in the top two crypto assets for “treasury purposes.” The company also mentioned acquiring ETH and MATIC, the native asset of blockchain scaling solution Polygon, as a form of payment for sales of certain virtual goods. Additionally, Reddit has purchased other crypto assets for “specific uses” for its product and engineering teams.
Regulatory Considerations
Reddit acknowledges the volatility of crypto prices and requires approval from its board of directors for any digital asset investments. The company’s treasury investments will be limited to BTC, ETH, and other cryptocurrencies that regulators identify as “likely not being a security.”
Unpredictability of the Digital Asset Sector
Reddit recognizes the unpredictable nature of the digital asset sector, stating that while it believes in the potential of cryptocurrencies and blockchain technology, their long-term adoption by consumers and businesses is uncertain.
IPO Plans
Reddit aims to list its Class A common stock on the New York Stock Exchange (NYSE) under the ticker symbol “RDDT.” Reuters reports that the company is targeting an IPO launch in March.
