Reddit has started incorporating minor allocations of Bitcoin (BTC) and Ethereum (ETH) into its treasury, as detailed in a filing with the US Securities and Exchange Commission.
Since 2022, the company has been strategically investing a portion of its excess cash reserves into Bitcoin and Ethereum, the only cryptocurrencies currently held by the company.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is an NFT? (Explained with Animations)
Despite the investments being described as "immaterial" in scale, Reddit believes in the "significant potential" of cryptocurrencies and blockchain technology.
The company's engagement with blockchain doesn't stop at investment; it extends to the adoption of blockchain technology for practical applications, such as using Ethereum and Polygon (MATIC) for virtual goods transactions.
However, the company remains cautious, acknowledging the nascent nature of crypto adoption among businesses and consumers.
The disclosure came as part of Reddit's preparations for a public offering, which also revealed the company's net loss of $90.8 million in 2023, despite a revenue increase to $804 million.
Our users have a deep sense of ownership over the communities they create on Reddit. This sense of ownership often extends to all of Reddit <...>. We want this sense of ownership to be reflected in real ownership—for our users to be our owners. Becoming a public company makes this possible.
Reddit's foray into cryptocurrency investments and blockchain technology experimentation represents a forward-thinking approach to asset diversification and technological adoption.
In July 2023, Reddit's commitment to digital innovation was also marked by the launch of Gen 4 collectible avatars.
