A part of Reddit’s extra funds have gone into Bitcoin and Ethereum, two of the most prominent cryptocurrencies.
Reddit also revealed that it has purchased Polygon to pay for virtual goods in a filing with the SEC before its expected initial public offering (IPO).
Polygon is a network that scales Ethereum. The purpose of the acquisition was to make transactions easier, especially when buying virtual products on the site. Its reputation rests on its capacity to speed up Ethereum’s network.
“We may continue to do this in the future, but we have invested some of our surplus cash reserves in Bitcoin and Ether and have acquired Ether and Matic as payment for sales of some virtual items,” Reddit noted in the SEC filing.
Keep in mind that the firm has been quiet about how many cryptocurrency tokens it really possesses. A member of Reddit’s product and engineering teams remarked that having a variety of cryptocurrency assets helps them understand and use them better.
The cryptocurrency market is not new to Reddit. As a reward for active participation in some subreddits, it tried out the idea of community points in 2020 using two Ethereum-based coins called Moons and Bricks. In November, the business decided to end this program.
The SEC filings reveal that Reddit is getting ready to list its shares on the New York Stock Exchange with the planned ticker code RDDT, and the announcement of its cryptocurrency investments comes at the same time.
Also Read: Coinbase Encourages Grayscale’s Ethereum ETF For Determination February 23, 2024
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