Reddit Invest Surplus cash into Bitcoin, Ethereum.

Reddit has been investing surplus income in Bitcoin and Ethereum since 2022, considering blockchain and crypto as having high potential.

Since 2022, the social media giant Reddit has used its surplus income to add tiny quantities of Bitcoin and Ether to its treasury. The company believes that blockchain technology and cryptocurrency have “significant potential,” according to new papers.

Reddit claimed in a filing for an initial public offering submitted to the United States Securities and Exchange Commission on February 22 that they invested some of their excess cash reserves in Bitcoin and Ether.

Reddit reported that the only cryptocurrencies stored in the company’s treasury as of December 31, 2023, were Bitcoin and Ethereum. They described the sums as “immaterial.”

“The net carrying value of our cryptocurrencies, which consisted primarily of Bitcoin and Ether, as well as all related cryptocurrency activity, was immaterial for the periods presented.”

In addition, Reddit stated that it has been “experimenting with blockchain technology” by purchasing Ether and Polygon’s MATIC as a form of payment for specific virtual products.

In addition, the company stated that the Ether and MATIC that it had received were “not material” over the years, nonetheless, it may continue to use these two cryptocurrencies as a method of payment in the future.

The product and engineering team stated that they also hold cryptocurrencies for “specific uses,” but they did not clarify which coins they own or the quantity within.

Additionally, Reddit stated that it believes blockchain-related technologies have “significant potential,” but it is uncertain whether or not businesses and consumers will continue to utilize them.

“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain.”

According to the S-1 registration, Reddit reported a net loss of $90.8 million in 2023. However, the company’s sales rose by 20.6% to $804 million year over year.

Following its investment round in 2021, Reddit’s worth was estimated at $10 billion, but a report published by Bloomberg on January 28 suggests the company may now only achieve half of that amount.

In October, Reddit discontinued its blockchain-based rewards service known as “Community Points.” This service rewarded users with points for positive interaction in specific subreddits across the platform.

The company stated that scalability concerns were the primary reason for the shutdown.