Social media giant Reddit has both Bitcoin (BTC) and Ethereum (ETH) in its coffers, according to a filing with the US Securities and Exchange Commission (SEC).
The company filed an S-1 registration statement with the securities regulator on Thursday in connection with its planned initial public offering (IPO).
In the documentReddit says it has invested some of its cash reserves in the two largest crypto assets for “treasury purposes.” The company also notes that it has acquired ETH and MATIC, the original assets of the blockchain scaling solution Polygon, as a form of payment for the sale of certain virtual goods. It has also acquired other crypto assets for “specific uses” for its product and engineering teams.
Reddit acknowledges that crypto prices can be highly volatile, noting that all investments in the company’s digital assets require board approval. The social media giant also notes that its state investments will be limited to BTC, ETH and other cryptocurrencies that regulators determine are “unlikely to be security.”
Reddit also recognizes the unpredictable nature of the digital asset industry in general.
“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and it is uncertain whether cryptocurrencies and blockchain technology will be adopted by consumers and businesses in the long term.”
Reddit goals to list its Class A common stock on the New York Stock Exchange (NYSE) under the ticker symbol “RDDT.” Reuters quotes ‘people familiar with the matter’ reports that the company is targeting an IPO in March.
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