Reddit, a major bulletin board aiming to list IPO stocks, reveals holdings of Bitcoin and Ethereum
Invest in BTC and ETH
On the 22nd, Reddit, a major US bulletin board, filed a notification regarding its initial public offering (IPO) with the US Securities and Exchange Commission (SEC). Among them, he stated that he holds Bitcoin (BTC) and Ethereum (ETH) as financial assets.
It looks like they are investing some of their surplus cash in BTC and ETH. He also said he received Polygon (MATIC) and Ethereum as payment for the sale of certain virtual goods.
He continued that there is a possibility that such virtual currency investments and acquisitions will continue in the future.
It did not disclose the number of tokens it held, but explained that the net book value of the virtual currency was “very small.â€
Reddit is aiming to list on the New York Stock Exchange (NYSE) in March of this year.
There are still only a few companies that hold virtual currencies as financial assets, but US companies such as MicroStrategy and Tesla are examples. Reddit has become one of those companies.
Furthermore, MicroStrategy, which continues to strategically purchase Bitcoin, has unrealized gains on Bitcoin exceeding $4 billion (approximately 600 billion yen) for the first time this month.
connection:
MicroStrategy’s Bitcoin holdings exceed 600 billion yen in unrealized gains
Also mentions how to select virtual currency
Reddit also explains the risks of holding cryptocurrencies, pointing out, for example:
We believe that cryptocurrencies and blockchain technology have great potential.
On the other hand, the popularity and adoption of cryptocurrencies is a relatively recent trend, and it is uncertain whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term.
Regarding the selection of virtual currencies to invest in, he also said the following.
Our investments in virtual currencies for financial purposes include Bitcoin, Ethereum, and other virtual currencies that the SEC, the U.S. Commodity Futures Trading Commission (CFTC), and others may consider in public statements and guidance that they are not securities. Limited to currency.
However, they reserve the opinion that these decisions are made by Reddit and are not based on any legal standards.
There is uncertainty as to how the SEC views Ethereum. SEC Chairman Gary Gensler said that as of 2022, proof-of-stake (PoS) stocks are likely to be securities. However, he did not mention Ethereum by name.
The lawsuit against Coinbase also states that Solana (SOL), Polygon (MATIC), and more than 10 other stocks “should be classified as unregistered securities,†but it does not mention Ethereum.
connection:
US SEC cites Terraform Labs case law in lawsuit against Coinbase and Binance
connection:
U.S. SEC Chairman Gensler: “PoS cryptocurrencies may qualify as securitiesâ€
What is PoS (Proof of Stake)?
A consensus algorithm that gives you the right to approve and generate new blocks depending on the percentage of virtual currency you own (stake). It was created as an alternative to Proof of Work (PoW), a consensus algorithm that requires high-performance computers and consumes large amounts of power to approve transactions. Once approved, you will receive newly issued virtual currency as a reward.
Virtual currency glossary
The post Reddit, a major bulletin board aiming to list IPO stocks, reveals holdings of Bitcoin and Ethereum appeared first on Our Bitcoin News.
