Reddit Using Excess Cash to Purchase Bitcoin and Ether

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Social media platform Reddit has announced that it has been converting the excess cash in its balance sheet to leading digital assets Bitcoin (BTC) and Ether (ETH) since 2022 and has added that crypto and blockchain have “significant potential.”

The platform has been actively experimenting with non-fungible tokens (NFTs), and back in 2022, it was confirmed that it would allow its users to use NFTs as profile pictures. Company spokesperson Tim Rathschmidt stated that Reddit is continuously experimenting with ways to create value for users and groups on the social media platform. 

Reddit Purchases BTC and ETH

Reddit has officially stated in a February 22 initial public offering (IPO) filing that it purchased small quantities of the leading digital assets, adding

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“We invested some of our excess cash reserves in Bitcoin and Ether.” 

It is important to note that Reddit has only added Bitcoin and Ether to its assets and noted that as of December 31, 2023, the amounts are “immaterial.”

“The net carrying value of our cryptocurrencies, which consisted primarily of Bitcoin and Ether, as well as all related cryptocurrency activity, was immaterial for the periods presented,” said the firm.

Experimentation with Blockchain Technology

Reddit has stated that it is continuously experimenting with blockchain technology and has been buying Ether (ETH) and Polygon (MATIC), which recently partnered with Starbucks, as a form of payment for the sales of certain virtual goods.

The company reported that the amounts of Ether and Polygon it acquired were deemed insignificant throughout 2022 and 2023. However, it hinted at the possibility of utilizing these two cryptocurrencies as a payment option in future transactions.

Reddit Believes in Significant Potential of Blockchain

Reddit also noted in the filing that its product and engineering teams also hold cryptocurrencies for “specific uses,” but did not mention which digital assets the teams held. Further, the platform also emphasized the potential of blockchain technology. 

Reddit also sees “significant potential” in blockchain technology but added that it isn’t sure if business and consumer adoption will continue. 

“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain,” it said. 

Alex Ohanian Bagged 50K ETH

As reported earlier by TheCoinRise, Alexis Ohanian, best known as the co-founder of Reddit, bagged 50,000 for just $15,000 during the presale of the token in 2014. Based on current prices, Ohanian’s investment is worth $150,000.

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