Reddit Reveals Cryptocurrency Holdings in IPO Filing

Reddit made its S-1 registration statement public with the Securities and Exchange Commission on Thursday, a crucial step for any company planning an initial public offering (IPO).

Within the S-1 filing, Reddit revealed that it had invested some of its excess cash reserves in Bitcoin and Ether. However, these investments are solely for treasury purposes. The company specified that its cryptocurrency investments are confined to Bitcoin, Ether, and any other cryptocurrency that regulatory bodies such as the SEC or Commodities Futures Trading Commission (CFTC), or their high-ranking members, have publicly deemed likely not to be securities.

Furthermore, Reddit disclosed that it held Ether and MATIC, the native token of Polygon, for the purpose of facilitating certain virtual goods sales. However, the amounts of MATIC and Ether received were deemed immaterial for the years ending December 31, 2022, and 2023.

In another segment of the filing, Reddit stated that the net carrying value of its cryptocurrencies, primarily Bitcoin and Ether, along with related cryptocurrency activities, was immaterial for the presented periods. Additionally, the company mentioned acquiring and holding digital assets as cryptocurrencies for specific uses by its product and engineering teams.

According to the S-1, Reddit plans to list on the New York Stock Exchange under the ticker RDDT.

Previously aiming for an IPO debut in March, Reddit had filed for IPO in the winter of 2021. If successful, it would mark the first IPO of a social media platform since Pinterest in April 2019.

In October of the prior year, Reddit concluded its Community Points beta program, which was based on Ethereum. The decision was attributed to scalability limitations and regulatory uncertainties at the time.