Reddit Invests in Bitcoin and Ether, Announces Plans for IPO
In Brief
Reddit’s S-1 filing reveals investment in Bitcoin, Ethereum and other cryptocurrencies, while it plans for an IPO.
Reddit publicly filed its S-1 registration statement with the Securities and Exchange Commission which is a necessary document for companies planning an initial public offering (IPO).
In the S-1, Reddit disclosed investing some of its excess cash reserves in Bitcoin and Ether for treasury purposes only and other cryptocurrencies identified by regulatory bodies as likely not being securities.
The filing revealed that the company also held Ether and MATIC, Polygon’s native token, as a form of payment for sales of certain virtual goods. However, the amounts received were not material for the years ended December 31, 2022, and 2023.
Regarding the net carrying value of cryptocurrencies, primarily Bitcoin and Ether, Reddit stated that it was immaterial for the periods presented. Additionally, the company acquired and holds digital assets for specific uses by its product and engineering teams.
According to the S-1, Reddit intends to list on the New York Stock Exchange under the ticker RDDT. The company had initially filed for an IPO in the winter of 2021 and aimed for a March debut on the stock market, making it the first social media platform to go public since Pinterest in April 2019.
Last October, Reddit ended its Ethereum-based Community Points beta program, citing scalability limitations and an uncertain regulatory landscape as contributing factors.
Reddit Strikes AI Training Deal with Google
In a recent development, Reddit disclosed a new partnership with Google, aimed at enhancing AI training methodologies. Reddit’s announcement on Thursday outlined its commitment to provide Google with streamlined avenues for model training.
As part of this collaboration, Google will gain access to Reddit’s data API, facilitating real-time access to content on Reddit’s platform. This arrangement is poised to offer Google an organized and efficient means to tap into Reddit’s extensive content repository. Furthermore, it enables Google to explore innovative ways of integrating Reddit content across its product spectrum.
The integration of Reddit’s content into Google‘s AI training regimen aligns with a prevalent trend among AI model developers who prioritize diverse data sources beyond conventional web scraping methods. This strategic approach aims to mitigate potential copyright challenges, addressing concerns raised by numerous content creators regarding unauthorized content usage.
Established in 2005 by Steve Huffman and Alexis Ohanian, Reddit has garnered acclaim for its extensive array of specialized discussion communities, many of which attract millions of members.
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About The Author
Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
