Reddit, the popular social media platform, has disclosed in a Securities and Exchange Commission (SEC) filing that it has invested a portion of its excess cash reserves into Bitcoin. The social media giant revealed this today as they have applied to go public and list their Class A common stock on the New York Stock Exchange under the symbol “RDDT” with this filing.
BREAKING: Reddit invested excess cash reserves into #Bitcoin — SEC filing pic.twitter.com/13IWr3QFvH
— Bitcoin Magazine (@BitcoinMagazine) February 22, 2024
“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,” the filing stated. “Our investments in cryptocurrencies for treasury purposes are limited to Bitcoin, Ether, and any other cryptocurrency that the SEC, Commodities Futures Trading Commission, or high-ranking members of the staff of such regulatory bodies may, through public statements or guidance, identify as likely not being a security.”
The decision to allocate funds into Bitcoin reflects Reddit’s confidence in the long-term potential of Bitcoin despite its short-term volatility. By investing in Bitcoin, Reddit joins a growing list of companies that have added BTC to their balance sheets as a hedge against fiat currency devaluation.
Reddit’s move also signals a broader trend of institutional adoption of Bitcoin, as more companies recognize the value proposition of BTC in today’s evolving financial landscape. While Reddit did not disclose the specific amount of Bitcoin it has purchased, the decision to invest in Bitcoin underscores its belief in the resilience and potential of BTC as a store of value and investment vehicle.