Reddit Liquidates Significant Crypto Holdings in Q3 Missing Out on Bitcoins October Surge
A recent submission to the SEC has disclosed that Reddit has divested a significant portion of its cryptocurrency holdings during the third quarter, liquidating its previously held Bitcoin and Ethereum, which were acquired “for treasury purposes.”
**Breaking News:** Reddit divested most of its #Bitcoin before the price surge in October — SEC filing
— Bitcoin Magazine (@BitcoinMagazine)
October 30, 2024
When the social media platform sought to go public in February, it reported possessing an “immaterial” amount of cryptocurrency on its balance sheet, having acquired these digital assets with surplus cash. In a statement on Tuesday, Reddit reiterated this characterization regarding the recent sale’s proceeds.
“We sold the majority of our cryptocurrency portfolio, which was primarily comprised of Bitcoin and Ether,” Reddit explained. “The net carrying value of our cryptocurrencies, along with the recognized gains from the sale, remained immaterial.”
Although the exact quantity of cryptocurrency sold was not specified, the divestiture occurred during the quarter ending September 30, suggesting that Reddit may have missed out on the latest surge in Bitcoin’s value, which is nearing a new record high.
Currently, Bitcoin is trading above $72,000. From July to September, when Reddit was offloading its assets, Bitcoin’s price fluctuated between approximately $54,000 and $68,000.
Despite this sale, Reddit continues to maintain some cryptocurrency holdings, including Ethereum and Polygon, which originated from the sale of virtual avatars on the Ethereum scaling network. The company also confirmed its possession of MATIC, even as Polygon initiates the transition to a new token named POL.
“While we recognize the considerable potential of cryptocurrencies and blockchain technology, it is important to note that the rise in popularity and usage of cryptocurrencies is a relatively recent phenomenon. It remains uncertain whether these technologies will achieve sustained adoption by consumers and businesses in the future,” Reddit stated.
Tags:
Bitcoin
Crypto news