According to Reddit, the popular platform known for its forums and discussions, the company recently made a modest sale of bitcoin ( BTC) and ethereum ( ETH).
Reddit Sells Bitcoin Just Before Major Price Jump – Here’s What We Know
This article was published more than a year ago. Some information may no longer be current.
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Reddit Cashed out Its Crypto Right Before October’s Price Spike
In a 10-Q SEC filing, Reddit disclosed the sale of these digital assets, which occurred before bitcoin saw its price climb significantly in Oct. Reddit, trading under the ticker RDDT on the New York Stock Exchange, made the move ahead of what would become a substantial increase in BTC’s value.
“During the three months ended September 30, 2024, we sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether,” Reddit explained to the SEC in the regulatory filing. “The net carrying value of our cryptocurrencies, as well as the gain recognized on sale, was immaterial for the periods presented.”
Curiously, when the social media powerhouse went public earlier this year, it highlighted holding crypto in an SEC filing that said:
As of December 31, 2023, we did not hold digital assets other than bitcoin and ether for treasury purposes, and our investment policy requires approval by our board of directors for any investments in cryptocurrencies.
The latest 10-Q filing, which labeled the sale as “immaterial,” didn’t specify the exact amount of crypto sold. Meanwhile, Reddit’s stock jumped on Wednesday, up 37.86% against the U.S. dollar. Known for its enthusiasm for digital assets, Reddit has actively explored cryptocurrency concepts over the years, including non-fungible tokens (NFTs) and a now-shelved community points blockchain system.
Arkham Intelligence reports that a wallet once linked to Reddit held over 1,500 ETH in 2021. The wallet liquidated its ETH holdings three years ago, leaving it with just 1.084 ETH today. Reddit’s journey with cryptocurrency has included early experiments, such as its 2013 initiative to accept Bitcoin for Reddit Gold subscriptions through Coinbase—a feature that was retired in 2018.
