Reddit (NYSE: RDDT) will join the S&P 500 before the market opens on Aug. 18, S&P Dow Jones Indices said after the close on Aug. 13. The company will replace AvalonBay Communities, which is leaving the index as it is being acquired by fellow constituent Equity Residential.
The announcement pushed Reddit shares sharply higher on Aug. 14. The stock rose to an intraday high of $184.28, up 16.5% from the previous day’s $158.12 close, then gave back part of the advance and finished at $178.09, still up 12.63% on the day.
JPMorgan estimated that passive funds tracking the S&P 500 will need to buy about 16.7 million Reddit shares. That is close to three times the company’s average daily trading volume of 5.98 million shares since its March 2024 listing. Once an index change takes effect, passive managers tracking that benchmark generally have to adjust their holdings accordingly.
Reddit now meets the index’s financial thresholds
The S&P 500 admission rules were revised in June. Companies now need a market capitalization above $22.7 billion, positive GAAP earnings in the most recent quarter, and positive cumulative GAAP earnings over the last four consecutive quarters.
Reddit now meets those standards. As of June 30, the company had 145.8 million Class A shares outstanding and 46.48 million Class B shares. Using the $178.09 closing price, that implies a market capitalization of about $34.2 billion.
In the second quarter, Reddit reported $804.9 million in revenue, up 61% from a year earlier. Net income came in at $252.8 million, compared with $89.3 million in the same period last year. Daily active users reached 130.3 million, up 18% year over year, while average revenue per user was $6.18, a 36% increase.
BlockTempo wrote in November 2024 that Reddit had posted its first profit in 20 years, a release that sent the stock up 50% in a single day. From that first profitable quarter to four straight profitable quarters and entry into the S&P 500, the report said the company took two years. It also described Reddit as the second pure social media company to enter the S&P 500 after Meta.
Even so, RDDT remains down about 24% on a year-to-date basis.
Bitcoin language disappears from recent filings
There is a separate detail in Reddit’s filings that stands out for crypto readers.
According to BlockTempo’s February 2024 report, Reddit’s IPO prospectus disclosed holdings in bitcoin, ether and Matic. The filing said: 「We invested some of our excess cash in Bitcoin and Ether, and accepted Ether and Matic as payment for certain virtual goods sales.」
Two years later, the wording has changed. Reddit’s 2025 annual report filed in February and its second-quarter report filed on July 31 both contain only this statement: 「To support certain of our business initiatives that rely on blockchain technology and NFT standards, including Reddit Collectible Avatars, we have acquired and used, and may continue to acquire and use, certain digital assets, including Ether and Matic.」
Bitcoin is not mentioned in either filing. The earlier language about putting excess cash into crypto as an investment is also gone, leaving only a description tied to business use.
That does not by itself prove Reddit has fully sold any bitcoin position. If a holding does not meet a materiality threshold, it may not need to be listed separately. Still, based on the current filings, Reddit no longer presents crypto holdings as a treasury decision that requires specific disclosure to shareholders.