Reddit eyes late March debut on NYSE: FT
The FT reports that the company could price between $31 and $34 a share
Reddit could trade later this month, according to reports.
The company, which released its S-1 late last month, is reportedly looking to price on March 20, meaning it could trade as soon as the next day, according to the Financial Times.
Reddit is looking to price between $31 and $34 a share, the report added. Those prices would mean a valuation of around $6.5 billion.
Bloomberg reported in 2022 that the company’s valuation could be as high as $15 billion.
The company will list its shares on the New York Stock Exchange under the ticker RDDT. The company’s public debut is expected to be highly anticipated. The company even warned in its S-1 that the stock “may be volatile or may decline significantly or suddenly regardless of our operating performance.” Such a warning is not uncommon in a regulatory filing, however.
Read more: SEC postpones decisions on bitcoin ETF options proposals
Last month, Reddit filed its S-1, which revealed that the company holds ether (ETH), bitcoin (BTC) and Polygon’s native token (MATIC). The S-1 clarified that it spent excess cash reserves on BTC and ETH and continues to hold both for “treasury purposes.” It received MATIC from “sales of virtual goods” but added that both the MATIC and ETH gained from such sales were immaterial for 2022 and 2023.
“Our investments in cryptocurrencies for treasury purposes are limited to bitcoin, ether, and any other cryptocurrency that the [Securities and Exchange Commission], Commodities Futures Trading Commission or high-ranking members of the staff of such regulatory bodies may, through public statements or guidance, identify as likely not being a security,” the company said.
The SEC, in its suits against both Binance and Coinbase, named MATIC as a token that it believes qualifies as a security.
Reddit’s S-1 added that the company believes both crypto and blockchain technology have “significant potential.” But it did warn that “the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain.”
Read more: DeFi needs institutions — and regulation
Reddit experimented with Ethereum-based Community Points before shuttering the program last year.
“Though we saw some future opportunities for Community Points, there was no path to scale it broadly across the platform,” Reddit user u/cozy__sheets, who is part of the Community team, wrote at the time.
The program was set to take place at the end of last year. Reddit cited an uncertain regulatory landscape and “scalability” limitations.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: Unpacking crypto and the markets.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
