Popular social media website Reddit has revealed using its excess cash as Bitcoin and Ethereum, seeing their potential significance. Reddit announced in its initial public offering filing with the US Securities and Exchange Commission that it had invested some of its surplus cash reserves in Bitcoin and Ether on Feb 22.

Reddit has also been experimenting with blockchain technology and has bought Ether and Polygon’s MATIC to pay for certain virtual goods. Moreover, the company stated that the amount of Ether and MATIC received was insignificant for 2022 and 2023, but it may consider using these cryptocurrencies as a payment method in the future.

The S-1 registration, typically used by companies planning to go public, revealed that Reddit suffered a net loss of $90.8 million in 2023, despite a 20.6% increase in revenue to $804 million compared to the previous year.

A Bloomberg report on Jan. 28 suggests that Reddit’s valuation, which was $10 billion after its funding round in 2021, may now only be worth half that amount.

In October, Reddit decided to close down its blockchain-based rewards service called “Community Points.” Despite attracting users by rewarding them with points for positive engagement in certain subreddits, the company cited scalability issues as the primary reason for the service’s shutdown.