Reddit has invested in crypto: the beginning of a new crypto wave?

[KryptoBull]

We already know that in addition to countries, there are many Public companies holding BTC such as MicroStrategy 190K BTC, Tesla 9720 BTC, Coinbase 9000 BTC..., and Private companies have also publicized their BTC amount such as Mt. Gox 200K BTC, Block.one 140K BTC, Tether 66465 BTC... All of these figures are publicly available for the community to know^[1], but all may just be the tip of the iceberg. I believe that even individual investors are susceptible to FOMO during the uptrend, and large companies cannot stay out of the crypto wave, meaning many Private companies have been holding BTC but do not disclose it. One of them is Reddit, this information was announced when Reddit prepared to go public through an IPO.

According to a recent SEC filing, Reddit has invested a portion of its cash reserves in BTC and ETH. The filing also reveals that Reddit has acquired MATIC as a form of payment for sales of certain virtual goods.

“We also acquired and hold digital assets that are cryptocurrencies for use by our product and engineering teams, which is limited to specific uses,” the company stated^[2].

I was surprised by this information, but Reddit's focus on BTC and ETH shows that Reddit is cautious about the regulatory landscape surrounding crypto.

Currently we do not know the value of the crypto assets that Reddit has, but I believe that Reddit's decision to invest in cryptocurrencies is a significant development for the crypto market. It shows that even large, established companies are starting to see the potential of crypto assets. This event helps to legitimize cryptocurrencies in the eyes of mainstream investors, and at the same time raises the question: how many Private companies are still holding crypto and how many billions of USD do they hold in crypto?

In the Top 100 richest BTC addresses, the owners of many addresses are still unknown^[3]. It could be billionaires like Elon Musk or Jeff Bezos, or it could be the reserve assets of companies, or a company could own multiple BTC addresses in the top 100. We never know accurate information, we have about 4M Private companies globally^[4], only a small part of them reserve BTC, the amount of BTC being held by them is also a significant part of the total 21M BTC. They may also be creating fluctuations on onchain charts like Whale Activities, Whale Shadows, or Bitcoin-Trend Accumulation Score by Cohort.

I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?
• Do you believe other private companies are holding undisclosed crypto?
• Is the potential concentration of crypto in corporate reserves beneficial or detrimental to crypto market?

References:
[1] Bitcoin Treasuries
[2] Reddit Is Invested In Bitcoin and Ethereum, SEC Filing Shows
[3] Top 100 Richest Bitcoin Addresses
[4] Our global data: Companies
Note:

• My opinion was posted first in that topic, on Bitcointalk
• I leave the source link to avoid plagiarism accusation.
• I excluded/ included minor things from an original thread ^{if necessary}.

[TomPluz]

According to a recent SEC filing, Reddit has invested a portion of its cash reserves in BTC and ETH. The filing also reveals that Reddit has acquired MATIC as a form of payment for sales of certain virtual goods.

I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?
• Do you believe other private companies are holding undisclosed crypto?
• Is the potential concentration of crypto in corporate reserves beneficial or detrimental to crypto market?

No, am not surprised at all as to the decision of Reddit to get into cryptocurrency and in fact as why they get in late is the one that surprised me. We know that Reddit has been the home of many crypto enthusiasts and supporters and there has been a rumor that Reedit will come up with its own token or coin that can act like its own cryptocurrency on the ecosystem. At any rate, we welcome Reddit to the world of cryptocurrency and I m sure this can bode well for the industry as a whole and I am hoping similar platforms will also follow the lead. Yes, we should expect that other privately held platforms are also into cryptocurrency most especially BTC and ETH as the safest choices available and we can only learned of this when they do their annual reporting. And this can certainly be a good trend as we are spreading the ownerships of coins not just with the people but also with corporate world but still I am wishing that more and more people will get into crypto and will be holding far greater shares that corporations do.

[bayu7adi]

I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?
• Do you believe other private companies are holding undisclosed crypto?

1 - It's not surprising, but at least it's another good thing where big companies are starting to get interested in cryptocurrency for investment purposes. I see this sticking around longer, and Reddit might make its users more aware of cryptocurrency through their platform.

2 - Yeah, there are still plenty of other companies that might not be in the media spotlight, we don't know, maybe there's quite a bunch. But companies showing interest in cryptocurrency definitely boost confidence among crypto holders.[/list]

[bitterguy28]

According to a recent SEC filing, Reddit has invested a portion of its cash reserves in BTC and ETH. The filing also reveals that Reddit has acquired MATIC as a form of payment for sales of certain virtual goods.

I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?
• Do you believe other private companies are holding undisclosed crypto?
• Is the potential concentration of crypto in corporate reserves beneficial or detrimental to crypto market?

No, am not surprised at all as to the decision of Reddit to get into cryptocurrency and in fact as why they get in late is the one that surprised me. We know that Reddit has been the home of many crypto enthusiasts and supporters and there has been a rumor that Reedit will come up with its own token or coin that can act like its own cryptocurrency on the ecosystem. At any rate, we welcome Reddit to the world of cryptocurrency and I m sure this can bode well for the industry as a whole and I am hoping similar platforms will also follow the lead. Yes, we should expect that other privately held platforms are also into cryptocurrency most especially BTC and ETH as the safest choices available and we can only learned of this when they do their annual reporting. And this can certainly be a good trend as we are spreading the ownerships of coins not just with the people but also with corporate world but still I am wishing that more and more people will get into crypto and will be holding far greater shares that corporations do.

That's it , while many of their users had been involving into crypto for how many years now yet reddit have just acknowledge this to happen now?
indeed that for me this is a late action and just because there are halving coming and they don't wanna miss the chance of making money from this?
popularity of crypto is now covering the world of social media and the whole internet.

[Stompix]

From the SEC filling:
https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm#i1b9a579e78a34dfa99f7f26daeec195b_13

Cryptocurrency
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.

So if they mentioned stuff like Certificates of deposit valued at $2,810,000 then the net value of crypto must be lower than even this, so probably anywhere around 1 million or less.

[hugeblack]

Companies tend to stay away from Bitcoin due to regulatory restrictions and because of some articles that link Bitcoin to energy consumption or activities that these companies do not want to mention their name with. Therefore, most companies, even if they see Bitcoin as an investment opportunity, prefer until there is clear legal legislation, while investors and funds Investment companies and some banks are more aggressive in investing, so we see that most of the investments are for these investors who create or support companies specializing in cryptocurrencies.

[Lucius]

~snip~
I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?
• Do you believe other private companies are holding undisclosed crypto?
• Is the potential concentration of crypto in corporate reserves beneficial or detrimental to crypto market?

I personally am not surprised at all, because for years various companies and individuals have realized that investing in cryptocurrencies can make a lot of money, and considering the economic situation in the world, diversification is something that is imposed as an imperative.

How bad and good such investments are for Bitcoin in the long term is hard to say, but the market is open to everyone and only time will tell what the consequences will be. Although many people do not like the fact that the rich have already bought (and will continue to buy), it should be emphasized that Bitcoin and altcoins have been off the radar of most of these companies and individuals for a long time, which means that ordinary little people had a lot of time to take advantage of the opportunity to they overtake them in something in which they are usually at an advantage.

In other words, if they want a ticket for this game, they will have to pay dearly for it, and in a way, it can be a great satisfaction for everyone who invested in the past.

[0t3p0t]

Does Reddit's crypto investment surprise you?

For me no because we all know that reddit forum is one of those that cryptocurrency enthusiasts den worldwide and they have a better understanding on what is the best and what not. So I am very positive about their crypto investments.

Do you believe other private companies are holding undisclosed crypto?

Of course, as a reserve it is possible.

Is the potential concentration of crypto in corporate reserves beneficial or detrimental to crypto market?

Well of course since we all know that institutions and other big time players has huge accumulation of Bitcoins on their possession and that will impact the price and market. That is one reason why some of them can manipulate the market.

[Cryptsafe]

If you ask me, I will tell you that this should not be or come as a surprise to anyone because Reddit is a social media and IT organisation and possibly a Tech as well. So investing in Crypto is expected of them to do as an organisation into such line of activities. Possibly, there are other big organisations that have invested in Crypto but are silent over it but with time, their details and information will be revealed to the Crypto community.

What can come as a surprise to me is when a non tech organisation goes public or remain silent to invest in Crypto and it is leaked to the public about their investment that is when I will be moved by such investment because that would encourage other non tech organisation to invest too.

[MrSpasybo]

In the Top 100 richest BTC addresses, the owners of many addresses are still unknown^[3]. It could be billionaires like Elon Musk or Jeff Bezos, or it could be the reserve assets of companies, or a company could own multiple BTC addresses in the top 100. We never know accurate information, we have about 4M Private companies globally^[4], only a small part of them reserve BTC, the amount of BTC being held by them is also a significant part of the total 21M BTC. They may also be creating fluctuations on onchain charts like Whale Activities, Whale Shadows, or Bitcoin-Trend Accumulation Score by Cohort.

I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?
• Do you believe other private companies are holding undisclosed crypto?
• Is the potential concentration of crypto in corporate reserves beneficial or detrimental to crypto market?

We only know a small part of this market, there are still too many large BTC wallet addresses whose owners have not been verified, behind them could be private companies or leaders of large corporations. Perhaps BTC is more mature and accepted than we thought.

1. Reddit is a famous forum and a place where the crypto community has come to have heated discussions for many years. Reddit also applied NFTs, so I'm not surprised that Reddit has reserves in BTC and ETH. If there is a surprise, it is MATIC, not BCH or LTC.

2. I think there are many individuals and private companies holding BTC and ETH, and their total crypto value may even be larger than the total value of crypto reserves of public companies.

3. The market is free, everyone has the right to self-determination over their crypto assets. We cannot require them to put it on the market for trading when they see it as a reserve of value for the future. Their holding is also good, reducing selling pressure on the market. I don't think that when they have reserves, they don't care about the onchain indicators we are tracking 

[arabspaceship123]

Reddit's used for discussions by ppl for years it's a famous forum so they should've launched their Reddit Coin . Reddit's got a strong community following they'll accept innovation but they're behind on time. They've haven't said why they've chosen MATIC but companies want progress so they'll use new tech to stay in the race to be leaders. They've seen MATIC could help them in their plans.

[Mr. Magkaisa]

       -   Every time I read about big businesses investing in bitcoin, it's literally a good thing to hear, right? We think that many rich people or institutions already believe in Bitcoin. On the other hand, we will be somehow worried because if the big institutional investors make them all hoard Bitcoin and they all wait for a bull run in Bitcoin, what about the small community investors?

I just thought about it; that's why I asked. Because somehow it still seems impossible to happen. That's why Reddit's investment is not new, and it will definitely come that they will invest a huge amount in bitcoin and even in other cryptocurrencies too, for sure.

[KryptoBull]

2 - Yeah, there are still plenty of other companies that might not be in the media spotlight, we don't know, maybe there's quite a bunch. But companies showing interest in cryptocurrency definitely boost confidence among crypto holders.

This is exactly what I'm waiting for: when large private companies reveal that they also hold a lot of cryptocurrencies like BTC, ETH, XRP... their customers and partners will also tend to imitate and try diversifying assets into BTC and Altcoins. This will help the crypto market have an extremely large source of new capital and grow very strongly!

So if they mentioned stuff like Certificates of deposit valued at $2,810,000 then the net value of crypto must be lower than even this, so probably anywhere around 1 million or less.

Thank you for the extremely useful information, 1M USD is also a large asset for a company, enough to show us that Reddit was interested and actually invested in crypto many years ago, as a pioneered the trend of accepting BTC and ETH as a high-value commodity.

I personally am not surprised at all, because for years various companies and individuals have realized that investing in cryptocurrencies can make a lot of money, and considering the economic situation in the world, diversification is something that is imposed as an imperative.

How bad and good such investments are for Bitcoin in the long term is hard to say, but the market is open to everyone and only time will tell what the consequences will be. Although many people do not like the fact that the rich have already bought (and will continue to buy), it should be emphasized that Bitcoin and altcoins have been off the radar of most of these companies and individuals for a long time, which means that ordinary little people had a lot of time to take advantage of the opportunity to they overtake them in something in which they are usually at an advantage.

In other words, if they want a ticket for this game, they will have to pay dearly for it, and in a way, it can be a great satisfaction for everyone who invested in the past.

Cathie Wood once predicted that BTC will reach 1M USD in the future, so currently BTC may only be in the early stages and the opportunity for those who believe in the future of BTC is still huge. I believe that companies will soon learn from Reddit and devote a few % of assets to BTC as a way to diversify assets and hedge risks. I hope it will be the crypto wave that brings the market to a capitalization of 10T USD.

3. The market is free, everyone has the right to self-determination over their crypto assets. We cannot require them to put it on the market for trading when they see it as a reserve of value for the future. Their holding is also good, reducing selling pressure on the market. I don't think that when they have reserves, they don't care about the onchain indicators we are tracking 

What you said is reasonable, they hold it long-term as an asset, at most it activates the intensity of buying and selling according to the market, rather than the market makers needing to constantly move to control the market through on-chain indicators. If their confidence continues to increase, collecting and holding more over time, scarcity will also increase, helping the BTC price to be better supported over time. I hope they are all diamond hands in the market and the selling decision process will be delayed because it must be approved by shareholders!

       -   Every time I read about big businesses investing in bitcoin, it's literally a good thing to hear, right? We think that many rich people or institutions already believe in Bitcoin. On the other hand, we will be somehow worried because if the big institutional investors make them all hoard Bitcoin and they all wait for a bull run in Bitcoin, what about the small community investors?

I just thought about it; that's why I asked. Because somehow it still seems impossible to happen. That's why Reddit's investment is not new, and it will definitely come that they will invest a huge amount in bitcoin and even in other cryptocurrencies too, for sure.

The market always operates based on investor greed and fear. Investors are always too scared or too greedy, so they often miss the best opportunities to buy and sell assets. We are happy that BTC is accepted, meaning that BTC has great potential, but we do not have much money to buy large amounts of BTC like those companies and billionaires, and even have to buy at a higher price.

I think BTC gives us an opportunity, those who do not have enough faith will not be able to profit from that opportunity.

[Baofeng]

I'm not really surprised, I mean I have been speculating that they have invested on Bitcoin at least all this year. Their community have been lively, and If I'm not mistaken, they have their own Reddit-related token, DONUT.

So it's just a matter of time that they will go out in public and make it official. I believed as well that there are tech and non-tech companies that have been diversifying their extra cash into crypto specially Bitcoin and Ethereum.

This is beneficial of course to crypto market, specially right now that we are approaching the block halving. For some companies, this sort of experiment might give them huge profits.

[Rubel007]

I'd like to hear your opinion on this issue:

• Does Reddit's crypto investment surprise you?

I think organisations like Reddit have been reviewing crypto for a long time and are trying to implement their interest when they are fully comfortable. Although I think they are a latecomer to this space, they will definitely be focusing now on how to establish themselves in this platform. As far as I know they will initially invest in coins like Bitcoin Ether and later their own projects. Sooner or later, the world's biggest companies will be involved in crypto. They have been able to understand that cryptocurrency is not silly matter anymore. This space is the most advanced in terms of potential. I don't see their inclusion in this space as a surprise as large organisations have already joined crypto. But I applaud their inclusion and I'm glad that all the organisations are coming to crypto so quickly.
[/list]