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

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2023 brought regulatory and macro-economic challenges to the crypto sector – which kept the price point of most cryptocurrencies relatively low. Despite the volatility seen in the sector last year, many corporate firms have not lost hope on their crypto involvement. Social networking platform Reddit and Jack Dorsey's fintech firm Block are two names that have recently disclosed information related to their BTC holdings and investments, which have both led to profits.

The current crypto market cap is close to $2 trillion (approximately Rs 1,65,78,200 crore) and Bitcoin is currently trading at $51,017 (approximately Rs 42.2 lakh). The crypto sector has seen an increase in valuations so far in 2024. In December last year, Bitcoin was trading at $43,064 (approximately Rs 35.8 lakh).

In fresh filings, both Reddit and Block have disclosed 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 the excess cash it saved. A report from Coindesk said that although the platform did not disclose the exact value of the Bitcoins purchased, the filing showed that Reddit managed to hold $1.3 billion (approximately Rs 10,778 crore) in cash by 2023. Was done. Friday, February 23.

With this, Reddit becomes one of the few companies along with MicroStrategy and Tesla to directly invest its cash stake in buying BTC and ETH.

block

Twitter (now X) founder and former CEO Jack Dorsey on Thursday disclosed the fourth quarter earnings of his fintech firm Block. The filing states that the block held 8,038 BTC, worth $340 million (approximately Rs 2,818 crore) as of December 31, 2023. Currently, the value of these tokens is $409 million (approximately Rs 3,398 crore).

Dorsey also said that the block managed to raise $66 million (approximately Rs 547 crore) through the sale of BTC tokens through its subsidiary Cash App – a 90 percent increase seen from 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 from price appreciation of our Bitcoin inventory during the quarter,” Block said in the filing. According to a separate report from CoinDesk.

Crypto-focused merchant bank Galaxy Digital Holdings, crypto brokerage Voyager Digital, and Bitcoin mining company Marathon Digital are among the other firms that have investments in crypto.


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