CoinGecko, a crypto data aggregator, announced on the X platform that Reddit is gearing up for an Initial Public Offering (IPO) with a strategic investment in BTC and ETH. This revelation sent the native token of r/CryptoCurrency, MOON, soaring by 14.6% to $0.128. Consequently, the buzz around Reddit’s financial maneuvers has escalated. Besides, Reddit embraces Ether and Polygon for certain virtual goods transactions.
Reddit’s decision to invest in digital assets aligns it with companies like MicroStrategy and Tesla. Moreover, the platform aims to go public on the New York Stock Exchange under the symbol “RDDT.” This strategy reflects a broader acceptance of cryptocurrencies.
Furthermore, Reddit’s filing with the SEC disclosed investments in Bitcoin, Ethereum, and Polygon. The company considers these investments as part of its future strategy. However, the exact number of tokens remains undisclosed. Reddit emphasized that the net carrying value of these assets is “immaterial.”
Moreover, Watcher.Guru also chimed in, affirming Reddit’s investment in Bitcoin and Ethereum and hinting at potential future investments. This additional endorsement adds credibility to Reddit’s strategic financial decisions.
Significantly, Reddit’s journey towards becoming a publicly traded entity started in December 2021. Co-founder Steve Huffman expressed the move as a step towards empowering users. He envisions real ownership for Reddit’s community creators.
Additionally, Reddit reported $804 million in sales for 2023. This figure marks a substantial increase from the previous year. The company’s total assets stand at $1.6 billion, with $1.3 billion in cash.
The announcement had a positive impact on Bitcoin and Ethereum prices, which are trading at $51,248.36 and $2,958.02, respectively, during press time. However, the gains were short-lived. Another Reddit-related token, DONUT, saw an uptick of 50.68% and is currently trading at $0.01432.
Reddit’s IPO filing and cryptocurrency investments mark a new chapter for the company. The social media platform is not only expanding its financial portfolio but also embracing the digital asset realm. This move could potentially influence other companies to explore similar ventures.
