The popular social media platform Reddit has revealed in its recent filings that it has been investing its excess cash in Bitcoin (BTC) and Ether (ETH) since 2022. The company believes that cryptocurrencies and blockchain technology have significant potential. In its filing with the Securities and Exchange Commission on February 22, Reddit stated, “We invested some of our excess cash reserves in Bitcoin and Ether.” As of December 31, 2023, Bitcoin and Ether were the only cryptocurrencies held in Reddit’s treasury, but the amounts were described as “immaterial.”
Additionally, Reddit has been experimenting with blockchain technology by using Ether and Polygon’s MATIC as a form of payment for certain virtual goods. However, the company stated that the amounts of Ether and MATIC received were also “not material” in 2022 and 2023. Nevertheless, Reddit may continue to use these cryptocurrencies as a payment method in the future.
Furthermore, Reddit mentioned that its product and engineering team holds cryptocurrencies for specific purposes, although the specific cryptocurrencies and amounts were not disclosed.
In terms of the potential of blockchain-related technologies, Reddit expressed optimism but also acknowledged uncertainty regarding business and consumer adoption.
In its S-1 registration, which is typically used by companies preparing to go public, Reddit reported $90.8 million in net losses in 2023. However, its revenue increased by 20.6% to $804 million compared to the previous year.
Following its funding round in 2021, Reddit was valued at $10 billion. However, a report from Bloomberg on January 28 suggested that its valuation may now be halved.
In October, Reddit discontinued its blockchain-based rewards service called “Community Points,” which rewarded users with points for positive engagement in certain subreddits. The main reason cited for the shutdown was scalability concerns.
Overall, Reddit’s filings demonstrate its interest in cryptocurrencies and blockchain technology, as well as its cautious approach towards their implementation.