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Reddit dabbling cash on Bitcoin, Ether and Polygon

by on29 February 2024

You might want to expect sensible business decisions

Reddit has admitted spending some of its spare cash on Bitcoin, Ether and Polygon, which may not bode well as the company tries to go public.

In a filing as part of the IPO sign-up with the SEC, the firm now has BTC and ETH in its bank account. For those not in the know, electronic currency is similar to a Ponzi scheme. It is highly volatile and depends on those dumb enough to invest in convincing others that they will get rich if they follow their mistakes.

According to the document, the social media site plans to use both Ether and Polygon to pay for digital goodies. Reddit said the amount of Polygon and Ethereum from virtual goods is now peanuts. But it hinted that it might keep adding Bitcoin and Ethereum to its stash.

 It plans to keep testing its love for virtual goods. The document also showed that Reddit invested using some of its extra cash. But the firm didn't spill the beans on how much crypto it bought.

Reddit's filing document explains that the company holds Bitcoin and Ethereum to let its engineering and product teams use it. It also mentioned the legal view that these two assets are not securities under US laws.

Reddit also said it wants to grow its crypto pile by adding other digital assets to its bank account. But it said such a move would depend on future laws letting crypto off the hook.

However, shareholders expected to invest in the company after it goes public might be concerned about its value disappearing overnight if its cryo-wallet suddenly loses value.

Last modified on 29 February 2024
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