A Reddit logo displayed on a smartphone with stock market prices in the background.
Omar Marques | LightRocket | Getty Images
Reddit, which has been at the heart of a recent social media-driven retail frenzy, said Monday that it raised more than $ 250 million in a new round of funding that doubled its valuation to $ 6 billion. dollars.
The social media company was valued at $ 3 billion after a round of funding in February 2019.
“We decided it was now the right opportunity to make strategic investments on Reddit, including video, advertising, consumer products and expand into international markets,” the company said in a blog post.
Reddit CEO Steve Huffman told the Wall Street Journal that it’s a good market for fundraising.
“Ratings are very high right now. It never hurts to raise money when there is an opportunity to do so and Reddit had a strong year,” Huffman said, according to the WSJ report.
Reddit, which has more than 50 million daily active users, told the blog post that advertising revenue increased 90% in the last quarter over the previous year.
Video game retailer GameStop and other companies, including filmmaker AMC Entertainment, have seen wild Girona for the past two weeks, as investors fond of forums such as Reddit’s WallStreetBets acted in concert to offer shares that some U.S. funds United had bet.
The rally has caught the attention of regulators, though U.S. Treasury Secretary Janet Yellen said Sunday it was too early to say whether new policies or regulations were needed to deal with volatility.