Reddit Invests Excess Cash into Bitcoin and Ethereum: S-1 Filing
Reddit says that it invests excess cash into Bitcoin and Ethereum, and it will continue doing so, according to a new SEC filing. In the latest filing, Reddit explains that they “hold cryptocurrencies and experiment with blockchain technology, which may subject us to exchange risk and additional tax, legal, and regulatory requirements.”
Furthermore, the filing continues with Reddit saying it acquired Ether and Matic as a form of payment for sales of certain virtual goods. The social platform proceeds by saying it will continue to do so. Reddit adds that they purchase these digital assets and cryptocurrencies for use by their product and engineering teams.
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“As of December 31, 2023, we did not hold digital assets other than Bitcoin and Ether for treasury purposes, and our investment policy requires approval by our board of directors for any investments in cryptocurrencies,” the filing by Reddit says. “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.”
Reddit to Continue Cryptocurrency Investing in 2024
Reddit appears to be joining the train of increased crypto adoption, as well as the potential of blockchain technology, the filing indicates. “While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain.”The filing does not mention exactly how much of each of these digital assets Reddit holds.” Hence, it doesn’t appear that Reddit will slow down on its investing in cryptocurrency, especially Bitcoin and Ethereum. The passing of Bitcoin ETFs in the US at the beginning of 2024 further thickens this plot.
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Back in 2023, it was revealed that Reddit cofounder Alexis Ohanian purchased 50,000 ETH in 2014. The cryptocurrency has of course exploded in price since then.
