CRYPTO — What, Another SEC Filing About Bitcoin and Ethereum?
The four most beautiful words in our common language: I told you so. — Gore Vidal
CRYPTO — Is Ethereum Hitting $3k Really a Game-Changer for Crypto?
Ah, the tangled web of SEC filings and cryptocurrency investments. Ah, well, here we are again, delving into the world of Reddit and its not-so-surprising revelation of its investments in Bitcoin and Ethereum. This intriguing piece of news has been unearthed from a filing with the Securities and Exchange Commission, shedding light on Reddit’s foray into the crypto domain. The plot thickens as we uncover Reddit’s experiments with Ether and Matic as a mode of payment for virtual goods.
Unveiling its ace in the hole, Reddit declared that it had incorporated Bitcoin and Ethereum into its financial arsenal, but remained tight-lipped about the exact sum poured into this endeavor. Nonetheless, the platform divulged its acquisition of Polygon (MATIC) for the procurement of virtual goods. In Reddit’s own words, “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.” Mysterious and cloak-and-dagger, isn’t it?
Delving deeper into the rabbit hole, Reddit let slip that Bitcoin and Ether were the sole cryptocurrencies adorning its treasury as of December 31, 2023, but slyly added that the amounts were inconsequential. “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.” Ah, the air of mystery thickens like pea soup.
As if that wasn’t enough, Reddit went on to reveal its flirtation with blockchain technology through the acquisition of ETH and MATIC for the sale of specific virtual goods, hinting at potential future dalliances with these digital assets. However, the platform coyly refrained from disclosing the specific cryptocurrencies or the amounts held by its product and engineering teams.
Amidst all this cloak-and-dagger, Reddit’s disclosure did hint at its perception of substantial potential in blockchain-related technologies. But, like a true enigma, it added a dash of uncertainty by expressing doubts about the long-term adoption of cryptocurrencies and blockchain technology by consumers and businesses. A true conundrum, indeed!
Adding fuel to the fire, Reddit’s S-1 registration brought to light a net loss of $90.8 million in 2023, albeit accompanied by a 20.6% surge in revenue to $804 million year-on-year. Reddit, valued at a staggering $10 billion after its 2021 funding round, may now be inching closer to half of its 2021 valuation, as per a Bloomberg report. Oh, the twists and turns of the crypto world!
But hold onto your hats, folks, Reddit’s history with digital assets dates back to 2020, when it birthed Moon and Bricks tokens running on Ethereum’s testnet. Not stopping there, Reddit also birthed an NFT avatar initiative on Polygon, tantalizingly tantalizing and giving away customized versions of the Snoo mascot in collaboration with artists. It seems that Reddit is weaving a web of intrigue in the digital realm, leaving us with more questions than answers.
In a world rife with uncertainty, one thing is crystal clear — Reddit’s journey into the realm of cryptocurrencies and blockchain technology is far from over. As we navigate through the maze of crypto news and events, Reddit’s enigmatic dance with digital assets continues to be a captivating spectacle. So, grab your popcorn and settle in, for the drama in the crypto world is far from over.
