The popular social media platform Reddit has disclosed in recent filings that it has been diversifying its treasury with small amounts of Bitcoin (BTC) and Ether (ETH) since 2022. Reddit believes that crypto and blockchain have great potential in the future.
According to the initial public offering filing with the United States 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, although the amounts are considered insignificant.
In addition to investing in Bitcoin and Ether, Reddit has also been experimenting with blockchain technology. It has purchased Ether and Polygon’s MATIC as a form of payment for certain virtual goods. However, the amounts of Ether and MATIC received were also deemed immaterial for 2022 and 2023. Nevertheless, Reddit may continue to use these cryptocurrencies as a payment method in the future.
Furthermore, Reddit’s product and engineering team holds cryptocurrencies for specific purposes, although the specific cryptocurrencies and amounts were not disclosed.
Reddit expressed its belief in the significant potential of blockchain-related technologies. However, it remains uncertain whether business and consumer adoption will continue to grow.
In terms of financials, Reddit reported net losses of $90.8 million in 2023, but its revenue increased by 20.6% to $804 million compared to the previous year.
Although Reddit was valued at $10 billion after its funding round in 2021, a Bloomberg report from January 28 suggests that its valuation may now be halved.
Last year, Reddit closed down its blockchain-based rewards service called “Community Points.” This service rewarded users with points for positive engagement in certain subreddits. The main reason for the shutdown was scalability concerns.
Overall, Reddit’s foray into the world of cryptocurrencies and blockchain reflects its recognition of their potential, as well as its willingness to explore and experiment with new technologies.