Social media giant Reddit has offloaded most of its cryptocurrency portfolio during the third quarter of the year, with the net value and the gain that the firm made through the sale of its Bitcoin and Ether holdings being deemed as “immaterial.”
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the firm made around $6.9 million through the sale of its BTC and ETH holdings. These holdings were sold in three months ended on September 30, meaning that they were sold with BTC trading up to $65,000.
The cryptocurrency’s price has since seen a significant rally, to now trade at $72,300. Ether, on the other hand, is roughly at the same level it was at the end of September, slightly above the $2,600 mark.
In its filing, Reddit noted that it invested “some” of its excess cash reserves in BTC and ETH, and that it keeps on receiving Ether and Matic as a form of payment for the sales of virtual goods, likely referring to non-fungible tokens (NFTs) being sold on the platform.
Per the firm, Ether and Matic received form these sales was “not material for the year ended December 31, 2023, or the nine months ended September 30, 2024.” It also acquired and holds digital currencies used by its product and engineering teams, with these funds being limited to specific uses.
It detailed that its BTC and ETH holdings were all sold, suggesting Reddit only kept on holding onto Matic it received from NFT sales, and added its investment policy “requires approval by our board of directors for any future investments in cryptocurrencies.”
The filing adds:
Any investments by us in cryptocurrencies for treasury purposes are limited to Bitcoin, Ether, and any other cryptocurrency that the SEC, Commodities Futures Trading Commission, or high-ranking members of the staff of such regulatory bodies may, through public statements or guidance, identify as likely not being a security.
Some of Reddit’s largest communities are affiliated with cryptocurrencies, with the r/CryptoCurrency and the r/Bitcoin subreddits being some of their largest platforms. These communities played a role in the cryptocurrency community’s boom, and were active points of discussions during the block size debate.
The firm launched community tokens, including Moons on the r/CryptoCurrency subreddit, used to reward users for their contributions, but later dropped support for these. In 2021, it also started introducing non-fungible token avatars.
Featured image via Unsplash.
