Reddit Holds Bitcoin (BTC) and Ether (ETH), According to IPO Filing
Household social media platform Reddit holds Bitcoin (BTC) and Ether (ETH), according to a public IPO filing.
The disclosure comes after Reddit filed to go public with the Securities and Exchange Commission (SEC) under the ticker “RDDT”.
RDDT is expected to start trading on the New York Stock Exchange (NYSE) in March.
“We are going public to advance our mission and become a stronger company,” co-Reddit founder Steve Huffman said.
Polygon (MATIC) also got a mention, with the filing stating that Reddit had bought both Ether and Polygon to pay for sales of certain virtual goods.
Reddit said that they “hold cryptocurrencies and experiment with blockchain technology, which may subject us to exchange risk and additional tax, legal, and regulatory requirements”.
The news that Reddit holds Bitcoin and Ether gave a temporary boost to sentiment in the crypto markets.
Bitcoin briefly jumped from $51,600 to above $52,000 before reversing.
Ether briefly hit new highs for the year in the $3,030s, before reversing back under $3,000.
Both were up between 1-3% in the past 24 hours, as per CoinMarketCap.
Reddit Holds Bitcoin (BTC) and Ether (ETH), Joining Ranks of Other Public Company Holders
The fact that Reddit holds Bitcoin and Ether means that it is soon set to join the ranks of several other major publicly traded companies in the US to have invested in crypto.
MicroStrategy, Galaxy Holdings Digital, Tesla, Coinbase Global and Block are the largest non-miner holders of BTC.
Microstrategy is by far the largest, holding nearly 175,000 coins worth over $9 billion, as per CoinGecko.
That means Microstrategy is sat on a profit of over $4 billion versus its entry value of $4.68 billion.
Reddit did not disclose how much Bitcoin (or Ether) it has bought.
But if it holds more than $10 million worth of BTC, it would be in the top 20 largest holders amongst public companies.
Reddit didn’t announce plans to continue buying BTC or ETH.
And, even if it did, the amounts probably wouldn’t be enough to have a huge impact on the market.
What’s more important is the symbolism.
More and more public companies are divesting from cash into Bitcoin (and other cryptos like Ether).
Bitcoin (and crypto) adoption continues to press ahead.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
