1min read
Published on: Feb 26, 2024
#Crypto 360
#Blockchain
#Daily Brew
Popular social media site Reddit is as dynamic in its investments as it is in its avatar offerings.
After taking the step towards launching its IPO, the pioneering internet company went public only the last week. Its filing with the Securities and Exchange Commission (SEC) reveals that the company has invested in new-age assets, keeping in line with its future-ready vision.
As per Reddit’s SEC filing, the company has invested in cryptocurrency, specifically Bitcoin (BTC), Ether (ETH) and Polygon (MATIC). However, it didn’t disclose the amount it has invested in digital assets.
The company reported its 2023 revenue to be $804 million, a rise of 21% from $666.7 million in 2022.
It also emerged that Sam Altman, CEO of OpenAI (the artificial intelligence company that owns ChatGPT), holds more than 5% of its capital stock. The investment grants Altman 9.2% voting power.
Underscoring the importance of the community, Reddit has reserved a significant portion of its shares for its “users and moderators.”
Users are those participants who contribute content to the different communities known as Subreddits. Moderators are those who manage the communities and enforce content moderation as per the rules and regulations set forth.
Reddit says in its filing that it has assumed that ETH isn’t a security, though it has based its determination on risk-based judgements.
The company also underlined the risks that may prevent it from accessing or trading its crypto holdings.
Nonetheless, Reddit is betting on crypto despite these risks.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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