Reddit applied to the US Securities and Exchange Commission for an initial public offering (IPO). It was discovered that Reddit has sizable Ether and Bitcoin holdings. In addition, Reddit bought Polygon and Ether to pay for the sale of specific virtual items. To list on the New York Stock Exchange and use the ticker symbol RDDT, Reddit filed for an initial public offering (IPO). It is anticipated that trading with RDDT will launch in March of this year, or 2024.
Reddit is now formally recognized as a different company with digital asset holdings thanks to its IPO filing. Elon Musk’s Tesla and Michael Saylor’s MicroStrategy are two more. It is known that only these businesses have made direct purchases of digital assets.
The social media giant explained that it used some extra money to buy Bitcoin and Ether. It further stated that the acquisition of digital assets may remain a strategy in the future. The number of tokens has not been revealed, but the business stated that the net value was irrelevant.
Reddit co-founder Steve Huffman said the firm is going public in order to further its goals and grow as a business. According to Steve, their users take great pride in the communities they build on the site, and they hope that this sense of ownership will spread throughout Reddit as a whole.
In general, the IPO filing made clear that the company engages in blockchain technology tests and owns cryptocurrency, even though it may expose them to new legal, regulatory, and tax obligations in addition to exchange risk. indicating that Reddit is fully aware of the dangers associated with owning digital assets. However, if it becomes necessary in the future, it is committed to supporting the strategy.
It has been two years since Reddit submitted its first non-public draft, and the company is currently attempting to work with the SEC to get its IPO filing authorized. That occurred in December 2021, meaning that Reddit’s journey to become a publicly traded company and be listed on the NYSE took years.
Bitcoin and Ethereum are downplaying their market performance. At the time this article was written, they had decreased by 2.58% and 1.42%, respectively. Bitcoin is currently trading at $50,978.14, down from a worth of over $52,000. Ether briefly reached a $3,000+ milestone and is currently trading at $2,931.96, down from that level.
Another coin linked to Reddit, DONUT, has increased by 40.05% since news of the development first broke. The price of DONUT is currently $0.01378, up 21.565 over the previous seven days and 128.41% for the previous thirty.
In addition, Reddit’s IPO filing stated that it will have $1.6 billion in assets by 2023, of which $1.3 billion will be cash. The same year’s sales were $804 million, which was more than the amount for 2022.