Reddit has filed an IPO application with the U.S. Securities and Exchange Commission. It has been revealed that Reddit holds significant stakes in Bitcoin and Ether. Reddit has also invested in Ether and Polygon as a means of payment for the sale of certain virtual goods. Reddit’s IPO filing is part of its attempt to list on the New York Stock Exchange under the ticker symbol RDDT. Transactions with RDDT are scheduled to begin in 2024, in March of this year.
With its IPO filing, Reddit has officially become public as yet another company holding digital assets. Other examples include Michael Saylor’s MicroStrategy and Elon Musk’s Tesla. These companies are the only ones known to have purchased digital assets directly.
The social media company said it acquired Bitcoin and Ethereum as part of its excess cash. A strategy to secure digital assets was also added. In May Continue in the future. The number of tokens was not disclosed, but the company said its net worth is unimportant.
Reddit co-founder Steve Huffman said he would take the company public to advance its mission and become a stronger company. Steve added that users have a deep sense of ownership in the communities they have created on the platform, and that he wants that ownership to extend across Reddit.
The IPO filings generally emphasized that the company holds cryptocurrencies and is experimenting with blockchain technology and may be subject to additional taxes, regulations and legal requirements, along with currency risks. This means that Reddit is well aware of the risks that come with holding digital assets. However, we are determined to support this strategy in the future if we deem it necessary.
Reddit’s recent attempt to get SEC approval for its IPO application comes two years after its first private draft was filed. This happened in December 2021, taking Reddit a year to list as a public company on the NYSE.why.
BTC and ETH are underperforming the market. At the time of writing, they are down 1.42% and 2.58%, respectively. BTC is trading at $50,978.14, down from its valuation of over $52,000. Ether was listed at $2,931.96, down from its briefly held target above $3,000.
DONUT is another Reddit-related token that has increased by 40.05% since its development appeared in the report. DONUT is listed at $0.01378, a surge of 21.565 over the past 7 days and 128.41% over the past 30 days.
Reddit’s IPO filing shows it will have $1.6 billion in assets by 2023, including $1.3 billion in cash. Sales for the same year were $804 million, which was higher than the 2022 figure.