Social networking site Reddit has strengthened its treasury since 2022 by converting its excess cash to Bitcoin and Ethereum.
The social media platform explained that this move was fueled by its belief in the future and cryptocurrencies.
Reddit Converts Cash to Crypto, Betting on Future
Reddit noted in a recent Initial Public Offering filing with the SEC that it only holds Bitcoin and Ethereum in its treasuries, adding that the amounts held were immaterial. However, the platform clarified that some of its product and engineering teams hold certain cryptocurrencies.
BREAKING: Reddit bought #Bitcoin for its treasury. pic.twitter.com/INgRpZplpX
— Radar🚨 (@RadarHits) February 22, 2024
It wrote in the filing: “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.”
Reddit’s inclusion of Ethereum in its treasury is somewhat significant. It joins a few groups of companies that have both Bitcoin and Ethereum in their corporate treasury. Most companies prefer to adopt MicroStrategy’s bitcoin-only policy for their treasury.
Other Reddit’s Crypto Plans
In addition to holding Bitcoin and Ethereum in its treasury, Reddit has also been buying Ether and MATIC as payment for certain digital items. The social platform further expressed its interest in continuing its interest in both cryptocurrencies in the future.
Reddit is one of the early Web2 platforms that embraced crypto and began experimenting with NFTs, crypto tokens, and other blockchain tools.
BREAKING: Reddit invested excess cash reserves into #Bitcoin — SEC filing pic.twitter.com/13IWr3QFvH
— Bitcoin Magazine (@BitcoinMagazine) February 22, 2024
Speaking on its view of cryptocurrencies, Reddit wrote, “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.”
Reddit previously embraced blockchain for some aspects of its community operations. The social networking site closed down “Community Points,” a blockchain-based rewards program, in October. The program gave users points for participating positively in specific subreddits. The company cited scalability issues as the cause of the shutdown.
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