Last update:
February 22, 2024 4:53 pm EST | 1 minute read
Source: DALL E
Household social media platform Reddit holds Bitcoin (BTC) and Ether (ETH), according to a public IPO filing.
The disclosure came after Reddit filed with the Securities and Exchange Commission (SEC) to go public under the symbol “RDDT.”
RDDT is expected to begin trading on the New York Stock Exchange (NYSE) in March.
“We are going public to advance our mission and become a stronger company,” said Reddit co-founder Steve Huffman.
Polygon (MATIC) was also mentioned. The filing states that Reddit purchased both Ether and Polygon to finance the sale of certain virtual goods.
Reddit said they are “holding cryptocurrencies and experimenting with blockchain technology, which could expose us to exchange rate risks and additional tax, legal and regulatory requirements.”
The news that Reddit is holding Bitcoin and Ether temporarily lifted sentiment in the crypto markets.
Bitcoin briefly rose from $51,600 to over $52,000 and then reversed.
Ether briefly reached new annual highs around $3,030 before falling back below $3,000.
According to CoinMarketCap, both are up 1-3% in the last 24 hours.
Reddit holds Bitcoin (BTC) and Ether (ETH), joining the ranks of other publicly traded companies
The fact that Reddit owns Bitcoin and Ether means it will soon join the ranks of several other large US publicly traded companies that have invested in cryptocurrencies.
MicroStrategy, Galaxy Holdings Digital, Tesla, Coinbase Global and Block are the largest non-miner holders of BTC.
According to CoinGecko, Microstrategy is by far the largest company, holding nearly 175,000 coins worth over $9 billion.
That means Microstrategy has a profit of over $4 billion compared to its entry value of $4.68 billion.
Reddit did not disclose how much Bitcoin (or Ether) it purchased.
But if it holds more than $10 million worth of BTC, it would be among the top 20 holders among publicly traded companies.
Reddit has not announced any plans to continue buying BTC or ETH.
And even if this were the case, the volumes would probably not be enough to have a major impact on the market.
The symbolism is more important.
More and more publicly traded companies are investing from cash into Bitcoin (and other cryptos like Ether).
Bitcoin (and cryptocurrencies) adoption continues to progress.
Disclaimer: Crypto is a high risk asset class. This article is for informational purposes and does not constitute investment advice. You could lose all of your capital.
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