In a surprise move, Reddit, the popular social media platform known as a leading community for discussing cryptocurrencies, announced that it will sell most of its cryptocurrency investments during the third quarter of 2024. The company generated $6.87 million from the sale of its major holdings of Bitcoin and Ethereum.
This massive sale contributed significantly to Reddit achieving its first ever profit in 19 years since its founding, with total profits amounting to about $30 million.
In Reddit’s IPO filing with the Securities and Exchange Commission (SEC) in February 2024, it was revealed that the company had made investments in cryptocurrencies. The filing showed that the company had invested part of its funds in cryptocurrencies such as Bitcoin, Ethereum, and Polygon. According to the information in the filing, the main purpose of the company’s investment in Ethereum and Polygon is to facilitate payments for virtual goods.
At the time, the company said the net book value of its digital assets was “intangible.” The social platform also announced that it would not invest in any new cryptocurrency until it was certain that it was not classified as a security under applicable legislation.
Reddit has long been at the forefront of blockchain adoption, being one of the first platforms to allow users to make payments using cryptocurrencies back in 2013. In 2020, the platform launched an innovative community points system built on the Ethereum network, which encouraged users to participate by providing digital tokens like MOON and BRICK.
Reddit didn’t stop there, but developed its own digital wallet called “Vault” to enable users to easily manage their digital assets. In 2021, the platform introduced a set of non-fungible assets built on the Polygon network, which strengthened its position as a leader in digital innovation.
