Reddit Admits To Buying Both Bitcoin And Ethereum

Bitcoin (BTC) surged to $52,000, and Ethereum (ETH) surpassed $3,000 once again following a recent disclosure by Reddit Inc. regarding their holdings in treasury reserves. Reddit allocated some of their surplus cash reserves into BTC and ETH in addition to also procuring ETH and MATIC as payment for sales of specific virtual goods, a practice which the company may sustain in the future.

Slow And Steady

The proceeds via the sales of virtual goods in ETH and MATIC were negligible for the fiscal years ended December 31st, 2022, and 2023. Furthermore, Reddit acquired and maintained digital assets, specifically cryptocurrencies, for the utilization of their product and engineering teams, subject to specific purposes.

As of December 31st, 2023, their digital asset holdings for treasury purposes exclusively comprised BTC and ETH, and any investments in cryptocurrencies mandate approval by their Board of Directors, as per their investment policy.

Moreover, according to a Reddit representative, treasury investments in cryptocurrencies are confined to Bitcoin, Ether, and any other cryptocurrency identified by the SEC, Commodities Futures Trading Commission, or prominent members of their staff through public statements or guidance as likely not constituting a security.

Reddit Goes All In

Reddit chose not to disclose precise amounts of BTC and ETH held, stating instead that the net carrying value of their cryptocurrencies, primarily Bitcoin and Ether, along with all related cryptocurrency activities, was immaterial for the periods outlined. Reddit has explored various crypto initiatives, including tokenized karma such as Moons and Donuts.

While Moons was discontinued, Donuts, operating on a decentralized model, continue to be traded and earned by participating in ethtraders discussions. Lastly, in their Initial Public Offering (IPO) filing, Reddit disclosed advertising revenue of $804 million for 2023.