American-based social network Reddit revealed in a Securities and Exchange Commission (SEC) filing on Thursday that it invests some of its excess reserves in Bitcoin and Ethereum. It also stated that it holds Polygon’s Matic for payments of certain virtual goods.
The filing also revealed that Reddit applied to list its stock, with the symbol RDDT, on the New York Stock Exchange. Trading of RDDT would go live on the stock exchange market pending approval by all regulatory bodies concerned.
Bullish on Cryptocurrencies
The popular social media platform stated that, despite the volatility attached to holding cryptocurrencies, it intends to continue investing in the sector in the future.
“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 said.
Reddit stated that cryptocurrencies have significant potential and that the popularity and prevalence of cryptocurrency are relatively recent trends. However, the social platform noted that mass adoption of the sector remains uncertain.
More Firms Now Hold Bitcoin
Like Reddit, other top firms have seen the need to incorporate cryptocurrencies into their balance sheets. Ark Invest’s Cathie Wood suggests that a properly diversified portfolio should contain at least 19.4% of Bitcoin. Notably, firms like Tether and Microstrategy hold a significant amount of Bitcoin in their custody.
The approval of a spot Bitcoin ETF by the SEC in January meant that more institutions could indirectly hold Bitcoin, which is still a win for the crypto asset. In less than 30 trading days, the new nine US-based ETFs now hold over $15 billion worth of Bitcoin, with BlackRock and Fidelity leading the pack.
