Reddit

Bitcoin

Steve

Reddit sold the majority of its cryptocurrency holding, mainly dominated by Bitcoin, before BTC started pumping up in October, as revealed in its latest&nbsp;Securities and Exchange Commission (SEC) filing.&nbsp;
The news comes as Bitcoin has experienced a significant price gain that cryptocurrency traders have coined the term ‘Uptober.’
In its <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001713445/3554e4a8-34e7-4627-8b9d-ed63b23a298c.pdf" rel="noopener noreferrer nofollow" target="_blank">SEC filing</a> the company said: “During the three months ended September 30, 2024, we sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether.”
<h3 id="reddit-missed-the-windfall-by-a-whisker">Reddit missed the windfall by a whisker</h3>
Reddit sold its Bitcoin at a price between $54,000 and $68,000 before it could cash in on a potential windfall as the cryptocurrency soared to $73,000.
Although Reddit did not disclose the amount of cryptocurrency that was disposed&nbsp;of, it maintained that the sale was immaterial.
<blockquote>
 “The net carrying value of our cryptocurrencies, as well as the gain recognized on sale, was immaterial for the periods presented.”
 Reddit.
</blockquote>
However the company said, the Bitcoin and Ether sold in the period to September 2024, were only in their portfolio in order to fulfill treasury purposes. Reddit added that the company needs board approval in order to execute any future cryptocurrency investments according to its investment policy.
“Any investments by us in cryptocurrencies for treasury purposes are limited to Bitcoin, Ether, and any other cryptocurrency that the SEC and other investment regulatory boards do not deem to be a security through a public statement,” Reddit said in its filing.
The company acknowledged that it is difficult to execute as they are risk-based judgments and not guided by regulatory developments.
According to Forbes, the Bitcoin-led cryptocurrency rally is the result of a combination of factors. Hedge fund investors have bet on Bitcoin as a safe haven against inflation, which is projected to be driven by government policies backed by presidential candidates Kamala Harris and Donald Trump.
Economists believe that the world will see the US debt soar by trillions of dollars and that the Federal Reserve which cut interest rates early will fail to tame inflation.
On the other hand, the price rally has coincided with the rising odds of a Trump presidency which despite his previous stance on the cryptocurrency has emerged to be <a href="https://www.cryptopolitan.com/bitpanda-considers-ipo-or-sale/" rel="noopener noreferrer nofollow">pro-Bitcoin</a> as he is advocating for a ‘strategic national Bitcoin stockpile’.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 JUST IN: Reddit sold the majority of its <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#Bitcoin</a> before BTC started pumping in October — SEC filing <a href="https://t.co/JGRrdf2PMK" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/JGRrdf2PMK</a>
 — Bitcoin Magazine (@BitcoinMagazine) <a href="https://twitter.com/BitcoinMagazine/status/1851678043980390866?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">October 30, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h3 id="reddit-shares-rallied-on-strong-q3-earnings">Reddit shares rallied on strong Q3 earnings</h3>
On the New York Stock Exchange, Reddit shares gained by <a href="https://www.cnbc.com/2024/10/30/reddit-shares-soar-35percent-on-profitability-rosy-guidance-.html" rel="noopener noreferrer nofollow" target="_blank">41% on Wednesday</a> to $116 per share after the company reported a $30 million net income for the third quarter.
The <a href="https://www.cnbc.com/2024/10/29/reddit-rddt-q3-2024.html?&amp;amp;qsearchterm=jonathan%20vanian" rel="noopener noreferrer nofollow" target="_blank">third quarter</a> net income beat estimates and was coming from a $7.4 million loss in the same quarter in 2023.
The company expects Q4 revenue to reach between $385 million and $400 million, above the average analyst estimate of $357.9 million.
<blockquote>
 “It was another strong quarter for Reddit and our communities as we achieved important milestones, including new levels of user traffic, revenue growth, and profitability.”
 Reddit CEO Steve Huffman.
</blockquote>
The firm has quite a history with cryptocurrencies particularly Bitcoin and Ethereum, as it began with its plans to integrate blockchain technology within its platform.
Reddit introduced the Vault cryptocurrency wallet and collectible avatars which allowed users to own digital items on the Ethereum blockchain via Polygon (MATIC).
However, since these developments, the company has distanced itself from recent cryptocurrency initiatives such as the Moons token and Collectible Expressions, which were later abandoned.
In its SEC filing, the company said it has doubts about the long-term adoption of blockchain, noting cryptocurrency speculative risks. The Reddit app still carries the Vault wallet, and&nbsp;allows users to access crypto rewards, despite the firm reducing its crypto investments.
Reddit actions indicate a more cautious approach to blockchain, despite over 18 million tokens of their collectible avatars having been minted.

Reddit sold off most of its Bitcoin in September, SEC filing shows

Table of Contents

Cryptopolitan_News

Other articles published on Oct 30, 2024

Bitcoin Is Nearing New Record High, but Retail Investor Interest Remains Low

Visa and FV Bank Debut New Debit and Expense Cards, Bridging Crypto and Fiat Global Payments

Scaramucci on Bitcoin Price: "It's Still Very Early"

4 Game-Changing Cryptos Set to Dominate – Act Before It’s Too Late

Base Announces Permissionless Fault Proofs Launch on Oct. 30

Thai Authorities Bust $620K Cross-Border Crypto Scam

Join our free newsletter for daily crypto updates!