**Reddit Sells Off Its Bitcoin and Ethereum Holdings: Key Insights**
In a recent filing with the U.S. Securities and Exchange Commission (SEC), Reddit disclosed that it has divested a significant portion of its cryptocurrency assets. Here are the essential details surrounding this development.
**Author:** Mete Demiralp
**Date:** 30.10.2024 – 17:21
**Update:** 7 seconds ago
According to the report, Reddit liquidated the majority of its cryptocurrency holdings during the third quarter of this year, reducing its Bitcoin and Ethereum reserves ahead of the market’s October upturn. The platform indicated that these digital assets were primarily held for “treasury purposes,” although it characterized their overall value as “insignificant.”
When Reddit submitted its initial public offering (IPO) application in February, it revealed that its cryptocurrency holdings were minimal and acquired through surplus cash. In the latest filing, the company reiterated this sentiment regarding the proceeds from its recent crypto transactions. “We have sold the majority of our crypto portfolio, primarily consisting of Bitcoin and Ethereum,” Reddit stated, clarifying that “the net book value of our cryptocurrencies is simply the net book value on our balance sheet.”
While the specific quantity of coins sold by Reddit remains undisclosed, the timing of the sale suggests that the company may have missed out on the recent surge in Bitcoin’s value this October.
Despite the reduction of its Bitcoin and Ethereum holdings, Reddit confirmed that it still possesses some digital assets, including MATIC and Ethereum obtained from selling virtual avatars on the Ethereum scaling network.
This recent pivot away from digital currencies marks a shift for Reddit, which had previously embraced cryptocurrency as a means to facilitate collectibles and enhance user engagement. The platform has been at the forefront of digital asset initiatives among social media companies since 2020.
In a statement, Reddit conveyed a cautiously optimistic view regarding the future of blockchain technology. “We believe that cryptocurrencies and blockchain technology hold significant potential; however, the popularity and adoption of cryptocurrencies are relatively new, and it remains uncertain whether they will gain long-term acceptance among consumers and businesses,” the company noted.
*Please note that this is not investment advice.*
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