Reddit Sold Most of Its Bitcoin During the Third Quarter, SEC Filing Shows
Reddit, a well-known social media platform, sold most of its crypto holdings during this year’s third quarter, according to a filing with the US SEC (Securities and Exchange Commission).
Reddit Dumps BTC and ETH Worth $6.8 Million
In February, when the firm conducted an initial public offering, it held substantial amounts of digital assets, purchased with excess cash. However, a document submitted to the SEC on Tuesday showed that Reddit had dumbed $6.8 million worth of Bitcoin and Ethereum during the Q3. Although it realized gains, the social media company said they were ‘immaterial.’
Considering Reddit cashed out its Bitcoin between July and September, it means the firm missed the recent gains recorded by the coin, which came $170 away from its peak price ($73,721) on Tuesday. In Q3, Bitcoin’s price ranged between $54,200 and $68,500.
It is important to note that Reddit is still holding another crypto, POL, formerly known as MATIC. In its SEC filing, the firm stated that the digital asset was generated from selling virtual avatars, which live on the Polygon, a leading Ethereum layer-2 network.
Is Reddit Abandoning its Crypto Ambitions?
Reddit began issuing virtual avatars in 2020, joining a few traditional companies that were exploring blockchain technology at the time. A year later, the social media platform introduced a token called Moons to reward users. However, it abandoned the digital currency in November 2023, with the Reddit community taking over the project.
Three months ago, Reddit took a step further away from crypto when it removed its ‘Collectible Expression’ section that featured NFTs created on Polygon in 2022. Notably, these NFTs were in high demand during their early days, at some point selling for $1,000 a piece on various trading platforms.
When asked why Reddit was running away from crypto, the firm’s representative told crypto-focused news house CoinTelegraph that the future of the blockchain space was uncertain due to a lack of clear regulatory framework in several countries, including the United States. The Reddit representative, however, said the company’s engineering team would continue to use crypto technology to some degree.
While Reddit has distanced itself from a number of its crypto projects, its mobile app still has the Vault Web3 wallet, which supports Polygon-compatible digital assets.
Reddit Board of Directors to Approve Crypto Investments in the Future
Moving forward, the social media platform says any future crypto investment must receive the board of directors’ approval. Moreover, the company will only consider investing in non-security coins like Bitcoin and Ethereum.
Following Reddit’s filing with the SEC, the company’s stock rose by 42% on Wednesday, reaching $115. In addition, the firm reported a net income of $30 million during quarter three. By comparison, Reddit posted a loss of $7.5 million in Q3 of 2023.
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