Reddit submitted an application for an IPO with the US Securities and Exchange Commission. It revealed that Reddit has substantial holdings in Bitcoin and Ether. Also, Reddit invested in Ether and Polygon as a form of payment for sales of certain virtual goods. Reddit’s IPO filing is part of its attempt to get listed on the New York Stock Exchange with the ticker symbol RDDT. Trading with RDDT is expected to go live in March of this year, which is 2024.
IPO filing made it public that Reddit is officially another company with holdings in digital assets. Others include Michael Saylor’s MicroStrategy and Elon Musk’s Tesla. Only these companies are known to have directly purchased digital assets.
The social media company clarified that it acquired Bitcoin and Ether with a portion of excess cash. It added that the strategy to acquire digital assets may continue in the future. It has not disclosed the quantity of tokens, but the company claimed that the net value was immaterial.
Steve Huffman, the co-founder of Reddit, stated that they are going public to advance their mission and become a stronger company. Steve said that their users have a deep sense of ownership about the communities they create on the platform, adding that they want the sense of ownership to extend to all of Reddit.
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The IPO filing, in general, highlighted that the company holds cryptos and experiments with blockchain technology, knowing that it could subject them to additional tax, regulatory, and legal requirements along with exchange risk. Meaning Reddit is well aware of the risks that holding digital assets has. Yet, it is determined to back the strategy in the future if it finds it necessary to do so.
Reddit’s recent attempt with the SEC to get its IPO filing approved comes after two years since the first non-public draft was filed. That happened in December 2021, making it a years-long process for Reddit to get listed on the NYSE as a publicly traded company.
BTC and ETH are downplaying their performance in the market. They were down by 1.42% and 2.58%, respectively, at the time of articulating this piece. BTC is exchanging hands at $50,978.14, down from a $52,000+ valuation. Ether is listed at $2,931.96, down from a $3,000+ milestone that it held for a few moments.
DONUT is another Reddit-related token, up by 40.05% since the development surfaced in reports. DONUT is listed at $0.01378, which is also a surge of 21.565 in the last seven days and 128.41% in the last 30 days.
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Reddit’s IPO filing further revealed that it will have $1.6 billion in assets, including $1.3 billion in cash, in 2023. Sales for the same year were $804 million, higher as compared to the figure for 2022.
