Reddit shed most of its cryptocurrency holdings in the third quarter of this year, according to a recent filing with the U.S. Securities and Exchange Commission (SEC), depleting its Bitcoin and Ethereum reserves long before the October rally.
The company described its crypto assets as primarily for “treasury purposes,” but the filing described their value as “insignificant.”
When Reddit filed for an initial public offering (IPO) in February, it disclosed that it held a negligible amount of cryptocurrency on its balance sheet, acquired using excess cash. This week, the social media giant used similar language to describe the proceeds from its latest crypto sale.
“We have sold the majority of our crypto portfolio, primarily consisting of Bitcoin and Ethereum,” Reddit said, adding: “The net book value of our cryptocurrencies is the net book value on our balance sheet.”
The exact volume of coins sold by Reddit has not been disclosed, but the timing suggests the company missed Bitcoin’s recent surge in October.
Despite Reddit ceasing to hold significant amounts of Bitcoin and Ethereum, it noted that it still holds some digital assets. The company confirmed that it holds MATIC as well as Ethereum earned from the sale of its virtual avatars on the Ethereum scaling network.
Reddit’s recent shift away from digital assets comes after it initially embraced cryptocurrency as a means to offer collectibles and reward user engagement. The company had been an early adopter among social media platforms, spearheading digital asset projects since 2020.
Reddit expressed cautious optimism about the future of blockchain technology in a statement. “While we believe that cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is relatively new and it is unclear whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term,” the company said.
*This is not investment advice.
