Ethereum

Reddit

Bitcoin

Polygon

Reddit Inc. disclosed that it has sold most of its cryptocurrency holdings, primarily consisting of Bitcoin (BTC) and Ethereum (ETH), according to a&nbsp;<a style="text-decoration:none" href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001713445/000171344524000102/rddt-20240930.htm">recent filing</a> with the US SEC .&nbsp;
During the three months ending September 30, 2024, Reddit reported selling nearly $6.9 million worth of cryptocurrency. The company emphasized that the net carrying value of these assets, along with the recognized gains from the sale, was considered "immaterial."&nbsp;
&nbsp;
In its filing, Reddit describes this sale as a means of strengthening its financial reserves. Reddit's decision to offload its crypto assets follows its move to file for an initial public offering (IPO) in February 2024. At that time, the company held an “immaterial” amount of cryptocurrency, acquired using excess cash reserves.&nbsp;
&nbsp;
While Reddit has moved away from Bitcoin and Ethereum, it still holds some crypto. These include Ethereum and Polygon, which are derived from the sale of virtual avatars on Ethereum's scaling network. Reddit stated that it held MATIC, though Polygon recently migrated its token to a new one named POL.
<h2 dir="ltr" id="span-span-strategic-shift-span-span">Strategic Shift</h2>
Since 2022, Reddit has gradually added to its cryptocurrency portfolio using excess cash reserves. The company has previously expressed optimism about the potential of crypto and blockchain technologies, recognizing their "significant potential."
&nbsp;
However, Reddit's recent filing reveals challenges the company faces in the advertising sector. It has experienced declines in advertising demand, particularly from technology, media, entertainment, and cryptocurrency sectors.&nbsp;
&nbsp;
The filing cites various macroeconomic factors, such as rising interest rates and geopolitical uncertainties, that have impacted these industries.
<h2 dir="ltr" id="span-span-future-considerations-span-span">Future Considerations</h2>
Reddit has reduced its involvement in the crypto space since its initial entry in 2020. Notably, it transferred control of its Moons token to the community and discontinued its Collectible Expressions feature associated with Polygon-based avatars.
&nbsp;
Under the current investment policy, any future investments in Bitcoin or cryptocurrencies will require board approval. These investments will also be limited to Bitcoin, Ethereum, or other assets identified as "likely not being a security."
&nbsp;
The company maintains that it believes in the potential of cryptocurrencies and blockchain technology. However, it also acknowledges the uncertainty regarding the long-term adoption of these technologies by consumers and businesses.
&nbsp;
Reddit's app still contains a digital asset wallet, called Vault, that is part of the platform's vision for a "new frontier" in digital engagement.&nbsp;
&nbsp;
Reddit reported a 42% increase in its stock price,&nbsp;<a style="text-decoration:none" href="https://finance.yahoo.com/quote/RDDT/">reaching $116 per share</a> on Oct. 30. The company exceeded analysts' expectations with a reported profit of&nbsp;<a style="text-decoration:none" href="https://investor.redditinc.com/news-events/news-releases/news-details/2024/Reddit-Announces-Third-Quarter-2024-Results/">$29.9 million</a>, a contrast to a loss of $7.4 million in the same quarter the previous year.&nbsp;

Reddit Sells Majority of Crypto Portfolio, Offloading Bitcoin and Ethereum

Table of Contents

BSCN

Other articles published on Nov 14, 2024

NEAR Protocol to Build World’s Largest Open-Source AI Model with 1.4T Parameters

Canary Capital Files for a Spot Solana ETF in the U.S.

Crypto Casino Metawin Hacked for $4M+ Due to Withdrawal System Exploit

PEPE Rallies: Examining the Factors Behind Its 50% Surge

Notcoin (NOT) Price Resumes Bullish Move: Analyst Predicts 120% Spike Post-Breakout

DeFi Technologies Launches SolFi: The "MicroStrategy for Solana"

Join our free newsletter for daily crypto updates!