In the third quarter, the social network Reddit disposed of reserves in the first cryptocurrency and Ethereum worth nearly $6.9 million. This follows from the submitted SEC filings.
"During the three months ending September 30, 2024, we sold most of our portfolio, which consisted mainly of Bitcoin and Ethereum. The net balance value of our cryptocurrencies and the profit from sales were insignificant for the reporting periods," Reddit reported.
According to the document, it concerns digital assets held for treasury purposes. Previously, the company invested a portion of its excess cash into two leading cryptocurrencies.
In addition, it received 'minor volumes' of Ethereum and POL (then still MATIC) from NFT sales.
Reddit also holds digital assets for limited use by engineering and product teams.
The company noted that its investments in cryptocurrencies are limited to coins that, according to public statements, are not considered securities from the regulators' perspective. However, this status can be reviewed at any moment.
Among other cryptocurrency-related risks, Reddit indicated price volatility, cybersecurity threats, and potential 'technological obsolescence.'
The company noted as a negative factor for holding digital assets the peculiarities of accounting in the U.S., which cause currency fluctuations to negatively affect financial performance.
Reddit also expressed concerns about the lack of a clear tax regime for cryptocurrencies.
Recall that MicroStrategy, with the largest corporate Bitcoin reserves of 252,220 BTC (~$18.2 billion), intends to raise $42 billion for further purchases of digital gold.