Consistent with Michael Saylor’s MicroStrategy and Elon Musk’s Tesla, Reddit has additionally introduced its plans for cryptocurrency investments, signaling a tactical shift in its monetary technique.
On the twenty second of February, the social media big filed for its Preliminary Public Providing (IPO) with the U.S. Securities and Trade Fee (SEC). As a part of the submitting, the social media firm disclosed that,
“We invested a few of our extra money reserves in Bitcoin and Ether.”
The story to this point
In keeping with the submitting, Reddit has invested surplus funds into Bitcoin [BTC] and Ethereum [ETH] since 2022. As of thirty first December, 2023, Reddit held solely Bitcoin and Ether in its treasury.
The submitting additional confirmed that the agency has additionally acquired Ether and Polygon [MATIC] as a type of cost for gross sales of particular digital items and can proceed this technique sooner or later.
The corporate didn’t disclose the quantity of crypto it holds, however added that the worth of the belongings had been “immaterial.”
Reddit mentioned,
“The web carrying worth of our cryptocurrencies, primarily Bitcoin and Ether, together with all related cryptocurrency actions, was deemed immaterial for the intervals lined.”
The potential end result
Reddit additionally expressed its perception within the “vital potential” of blockchain-related applied sciences, though it stays unsure in regards to the sustained adoption by each companies and shoppers.
“The recognition and prevalence of cryptocurrencies is a comparatively current pattern, and whether or not cryptocurrencies and blockchain expertise will proceed to be adopted by shoppers and companies in the long run is unsure.”
In conclusion, regardless of the agency’s reported web losses of $90.8 million, the information of its cryptocurrency holdings precipitated minor worth shifts in Bitcoin, ether, and its DONUT token.
Thus, it might be attention-grabbing to see how the companies’ experiment with blockchain expertise would unfold.
