Reddit, Jack Dorsey’s block reveal crypto investment details as tech firms begin experimenting with Web3

2023 brought the crypto sector face to face with regulatory and macroeconomic challenges – this kept the price points of most cryptocurrencies relatively low. Despite the volatility the sector witnessed last year, several corporate firms did not lose hope for their crypto commitments. Social networking platform Reddit and Jack Dorsey’s fintech firm Block are two names that recently revealed information related to their BTC holdings and investments, which brought profits to both.

The current crypto market cap is close to $2 trillion (roughly Rs. 1,65,78,200 crore), with Bitcoin currently trading at $51,017 (roughly Rs. 42.2 lakh). The crypto sector has seen a rise in valuation so far in 2024. Bitcoin was trading at $43,064 (roughly Rs. 35.8 lakh) in December last year.

In new documents, Reddit and Block revealed their investments in BTC, ETH and other cryptocurrencies.

Reddit

In a filing with the US Securities and Exchange Commission (SEC), Reddit said it purchased Bitcoin and Ether with excess cash it was able to save. Although the platform did not disclose the exact value of the bitcoins it purchased, the filing showed that Reddit managed to hold $1.3 billion (roughly Rs. 10,778 crore) in cash by the time 2023 ended. report of Coindesk said on Friday, February 23rd.

With this, Reddit has become one of the few companies along with MicroStrategy and Tesla that have directly invested their cash holdings into buying BTC and ETH.

Block

Jack Dorsey, the founder and former CEO of Twitter (now X), revealed the fourth-quarter earnings of his fintech firm Block on Thursday. The documents note that Block held 8,038 BTC, which was worth $340 million (approximately Rs. 2,818 crore) on December 31, 2023. Currently, the value of these tokens stands at $409 million (approximately Rs. 3,398 crore).

Dorsey also said that Block has managed to earn $66 million (roughly Rs. 547 crore) by selling BTC tokens through its subsidiary, Cash App – marking a 90% increase since 2022.

“The year-over-year increase in bitcoin revenue and gross profit was driven by an increase in the average market price of bitcoin, as well as the benefit of appreciation in our bitcoin inventory during the quarter,” Block said in a separate filing. report by Coindesk.

Crypto-focused merchant bank Galaxy Digital Holdings, crypto brokerage Voyager Digital and bitcoin mining company Marathon Digital are among other firms with crypto investments.