Reddit, the popular social media platform known for its message boards and online communities, has revealed investments in Bitcoin (BTC) and Ethereum (ETH) using some of its excess cash reserves. This was included in the SEC filings as part of its preparations for an initial public offering (IPO) of the company.
While the exact amount invested in these leading cryptocurrencies remains undisclosed, Reddit also confirmed its use of Polygon (MATIC) for virtual goods purchases on its platform. Polygon, an Ethereum scaling network, facilitates faster and cheaper transactions compared to the main Ethereum blockchain. The company clarified that the net value of its crypto holdings is currently immaterial to its financial statements. However, it acknowledges the potential benefits of holding cryptocurrencies, citing their use by product and engineering teams for various purposes.
Previously in 2020, Reddit experimented with Moons and Bricks, tokens built on the Ethereum testnet and rewarded to users for contributions to specific communities. While this program was eventually scrapped in November 2023, it demonstrated Reddit’s early exploration of blockchain technology and its potential applications.
Further solidifying its engagement with the crypto world, Reddit launched a successful NFT avatar initiative on Polygon. This initiative involves both selling and giving away customized versions of its mascot, Snoo, designed by artists and in collaboration with brands like the NFL. To date, over 34 million Reddit NFT avatars have been minted, highlighting the company’s embrace of this popular digital asset trend.