Reddit’s crypto holdings, comprising mostly BTC and ETH, have been offloaded by the end of Q3 2024.
Social media platform Reddit has recently offloaded most of its bitcoin (BTC) and Ether (ETH) holdings in 2024’s third quarter. A filing with the US Securities and Exchange Commission (SEC) reveals so.
While other crypto were involved in this selling, BTC and ETH marked the majority of its holding and selling. Reddit’s 10Q filing with the SEC shows that the net value of the assets and the gains they generated were insignificant in the third quarter.
“During the three months ended September 30, 2024, we sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether,” the report read. “The net carrying value of our cryptocurrencies, as well as the gain recognized on sale, was immaterial for the periods presented.”
Reddit’s Profits From Crypto Were Negligible
The filing also revealed that the funds generated from Reddit’s selling activity amounted to $6.869 million for the third quarter. Reddit’s crypto holdings come from the company investing small amounts into digital assets, namely BTC and ETH. However, it also raises ETH and Polygon’s POL, formerly called MATIC, through the sale of virtual and digital items.
Reddit’s ETH and POL sales have been insignificant throughout last year and the nine months that have encapsulated three quarters across this year. According to the platform, the sales were “not material for the year ended December 31, 2023 or the nine months ended September 30, 2024.”
The company has also stated that some of the assets it held were for its tech and product teams’ use to trial new use cases. Its policies mention it will only invest in and hold BTC and ETH and other digital assets that the US SEC does not explicitly title as a security, either by its public statements or through guidance.
Reddit began dipping its hands into the crypto market in 2022, adding small amounts of cryptocurrencies into its corporate treasury. The company looks like it believes in the asset class, as it previously mentioned in a filing for an initial public offering (IPO) about its belief in crypto and blockchain technology for its potential.
The same filing also threw light on Reddit’s decreasing advertisement revenue from crypto projects compared to what they brought to the table during the pandemic. “Since the three months ended December 31, 2022, we experienced declines in advertising spending in certain macro-challenged sectors, particularly technology, media and entertainment, and cryptocurrency.”
