Benzinga - Reddit, the social platform, has allocated a portion of its excess cash reserves to two of the largest cryptocurrencies, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
What Happened: According to a filing with the SEC ahead of an anticipated initial public offering (IPO), Reddit also disclosed that it had bought Polygon (CRYPTO: MATIC) to pay for virtual goods.
Polygon is an Ethereum scaling network. It was acquired to facilitate transactions, particularly for the purchase of virtual goods on the platform. It is known for its capability to enhance Ethereum’s network performance.
“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,” Reddit stated in the SEC filing.
It should be noted that the company did not reveal the exact number of cryptocurrency tokens it has.
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Why It Matters: Reddit mentioned that maintaining a portfolio of cryptocurrencies aids its product and engineering teams in using and understanding these assets.
Reddit has not been alien to the crypto economy. In 2020, it experimented with the concept of community points through Ethereum-based tokens named Moons and Bricks, distributed as rewards to contributors of particular subreddits. The company discontinued this initiative in November.
The news about Reddit’s investment in cryptocurrencies arrives as the company prepares to take its stock to the New York Stock Exchange, under the proposed ticker symbol RDDT, as noted in the SEC documentation.
Price Action: At the time of writing, BTC was trading at $51,050, up 0.35% over the past 24 hours, as reported by Benzinga Pro.
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