Reddit, the website known for viral memes, lively boards, and big stock market changes, has officially began its process to go public.
The website that calls itself the “front page of the internet” has filed for an Initial Public Offering (IPO) on the New York Stock Exchange and said it plans to trade under the ticker symbol “RDDT.”
Reddit’s Crypto Integration and Community-Driven Ownership
In December 2023, Reddit had 73 million daily active users and an even more impressive 267 million weekly active users. It has become a top-tier social media site. But it didn’t take the usual path to Wall Street. It used both standard measures and a new move into cryptocurrencies.
Reddit has reported over $800 million in sales for 2023, a respectable 21% year-over-year rise. However, the site is still losing money, with a net loss of $91 million. But the IPO file shows a unique part of Reddit’s business plan: it uses cryptocurrencies as part of its environment.
Reddit revealed that it had Bitcoin and Ether hidden in many papers. Also, the site has accepted digital currencies by letting users pay for some virtual goods with Ether and Polygon (MATIC). Reddit is now following the lead of many large companies exploring the possibilities of digital assets. This smart move positions Reddit as a forward-thinking player in the constantly changing world of technology.
Even though Reddit’s coin stocks may not be worth a lot, their message is clear: Reddit isn’t afraid to try new things and learn about new technologies, which makes it different from other social media sites.
One curious thing about Reddit’s IPO story is how it deals with ownership. Steve Huffman, co-founder of the company, talked about how committed it is to reflecting the community-focused values that make up its users. Huffman wrote in the filing, “We want this sense of ownership to turn into real ownership—for our users to be our owners.”
Was very intrigued why a Reddit S-1 hit one of my Bloomberg Alerts that i use to track Crypto ETP filings. It’s because they bought #Bitcoin and #Ethereum
https://t.co/VS9M3Gslkf pic.twitter.com/oTB1xdrnXN
— James Seyffart (@JSeyff) February 22, 2024
Unfortunately, Reddit has its problems. It’s still not as successful in business as companies like X, and making money is still not a goal.
