Reddit became one of the few companies to have purchased digital assets directly, joining the ranks of Elon Musk’s Tesla and Michael Saylor’s MicroStrategy, the firm disclosed that it had invested a portion of its excess cash in bitcoin (BTC) and ether (ETH).
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,.
Reddit stated in an initial public offering filing with the Securities and Exchange Commission of the United States dated February 22.
Reddit stated that, during the periods depicted, the “net carrying value” of its cryptocurrency holdings was “irrelevant.” It further stated that it maintains cryptocurrency holdings for the use of its product and engineering teams.
A subsequent filing will contain Reddit’s disclosure of proposed provisions for the IPO, including its valuation in a listing. A minimum initial public offering (IPO) valuation of $5 billion has been recommended for the company, which may commence marketing the shares as early as March.
Reddit could be the first significant market test for a venture capital-backed technology startup in 2024. According to data provider PitchBook, the company was valued at $10 billion following a financing round in 2021, having raised $1.38 billion.
The fourth quarter saw an average of 73.1 million daily active unique visitors on Reddit, which was established in 2005, according to the filing. Following the stock market upheaval caused by a forum on the website, WallStreetBets, it emerged as a symbol of the meme-stock era.
Steven Huffman, co-founder and chief executive officer of Reddit, stated in a notarized letter attached to the filing that the company has numerous prospects for expanding its business and platform.
According to the filing, the company will reserve shares in the IPO for purchase by users and moderators who created accounts prior to January 1. Subsequent to this, the quantity of shares to be allocated under the directed share program will be revealed.
