Reddit has a big plan: it wants to enter the US stock exchange, specifically the New York Stock Exchange (NYSE). As if that wasn't enough, the company invested in bitcoin and ether.
Reddit goes public and invests in BTC and ETH
Social media platform Reddit filed an S-1 with the U.S. Securities and Exchange Commission on Thursday. In other words, it is trying to enter the stock exchange. However, we also learned something else from the report. The company revealed that it invested some of its “excess cash reserves” in cryptocurrencies, including bitcoin (BTC) and ether (ETH).
According to the filing, the company acquired both ETH and one of the network's Layer 2 tokens, polygon (MATIC).
We also acquire and hold digital assets that are cryptocurrencies for use by our product and engineering teams, which is limited to certain uses
– the company stated in the letter.
As of December 31, the company clarified that it only holds BTC and ETH as assets for treasury purposes. The document also stated that the net carrying value of the BTC and ETH holdings was “immaterial” at the time.
Reddit does not intend to invest in other cryptocurrencies in the future unless they are recognized by federal regulators as non-securities assets.
Previous blockchain adventure
It is worth recalling that Reddit is very popular in the BTC and altcoin community. He himself decided to issue his tokens at some stage. However, the project was recently completed.
Late last year, Reddit announced that it would eliminate its Community Points in the coming weeks. These are the platform's social tokens (more precisely: ERC-20 tokens based on the Ethereum network), which were created in 2020. They were very popular among users of this website. So why was it decided to eliminate them? The Reddit message stated that the points were eliminated because it was impossible to scale them on the platform.
