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Reddit Inc. has disclosed cryptocurrency investments in its initial public offering (IPO) filing with the U.S. Securities and Exchange Commission (SEC). The social media giant noted that as of the end of December last year, “we did not hold digital assets other than bitcoin and ether for treasury purposes, and our investment policy requires approval by our board of directors for any investments in cryptocurrencies.”
Reddit’s IPO Filing Reveals Crypto Investments
Social media company Reddit Inc. filed a registration statement (S-1 filing) for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on Thursday.
The company disclosed in its filing: “We hold cryptocurrencies and experiment with blockchain technology, which may subject us to exchange risk and additional tax, legal, and regulatory requirements.” The filing adds:
We invested some of our excess cash reserves in bitcoin and ether and also acquired ether and matic as a form of payment for sales of certain virtual goods, which we may continue to do in the future.
“Ether and matic received from the sales of virtual goods was not material for the years ended December 31, 2022, and 2023,” Reddit noted. “We also acquired and hold digital assets that are cryptocurrencies for use by our product and engineering teams, which is limited to specific uses.”
The company noted: “As of December 31, 2023, we did not hold digital assets other than bitcoin and ether for treasury purposes, and our investment policy requires approval by our board of directors for any investments in cryptocurrencies.” Moreover, Reddit detailed: “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.”
Reddit’s filing further details:
Our investments in cryptocurrencies for treasury purposes are limited to bitcoin, ether, and any other cryptocurrency that the SEC, Commodities Futures Trading Commission, or high-ranking members of the staff of such regulatory bodies may, through public statements or guidance, identify as likely not being a security.
“Such determinations, however, are risk-based judgments made by us, and while such judgments are informed by regulatory developments, any such determination does not constitute a legal standard or determination binding on any regulatory body,” the company cautioned. In addition, Reddit explained that the company continues to pursue new business initiatives, including blockchain technology and non-fungible tokens (NFTs).
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