Reddit says it invested ‘excess cash reserves’ in bitcoin, ether

The filing also said that Reddit held ether and MATIC “as a form of payment for sales of certain virtual goods”

by Katherine Ross /

February 22, 2024 03:52 pm

BigTunaOnline/Shutterstock modified by Blockworks

Reddit publicly filed its S-1 registration statement with the Securities and Exchange Commission on Thursday.

An S-1 is a necessary document for any company plotting an initial public offering (IPO).

In the S-1, Reddit disclosed that the company “invested some of our excess cash reserves in Bitcoin and Ether.”

The social media company only holds bitcoin and ether “for treasury purposes.”

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“Our investments in cryptocurrencies for treasury purposes are limited to Bitcoin, Ether, and any other cryptocurrency that the SEC, Commodities Futures Trading Commission, or high-ranking members of the staff of such regulatory bodies may, through public statements or guidance, identify as likely not being a security,” the company said.

The filing added that the company also held ether and MATIC, Polygon’s native token, “as a form of payment for sales of certain virtual goods.” The company disclosed that the MATIC and ether received “was not material for the years ended December 31, 2022 and 2023.”

In a separate section of the filing, the company said the “net carrying value of our cryptocurrencies, which consisted primarily of Bitcoin and Ether, as well as all related cryptocurrency activity, was immaterial for the periods presented.”

“We also acquired and hold digital assets that are cryptocurrencies for use by our product and engineering teams, which is limited to specific uses,” the filing continued.

Per the S-1, Reddit would list on the New York Stock Exchange under the ticker RDDT.

Reddit, which initially filed for an IPO back in the winter of 2021, previously eyed a March debut on the stock market, according to a report from Reuters last month. It would be the first social media platform to go public since Pinterest in April 2019.

In October of last year, Reddit ended its Community Points beta program, which was Ethereum-based. At the time, the social media company cited “scalability limitations” as well as an uncertain regulatory landscape as factors.

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