Reddit, the popular social media platform, revealed in documents submitted to the U.S. Securities and Exchange Commission (SEC) that it sold the majority of its cryptocurrency portfolio, primarily consisting of Bitcoin and Ethereum, during the third quarter of this year. The company stated that the proceeds from the sales are considered immaterial.
This move comes after Reddit filed for an initial public offering (IPO) in February, at which time it held a “minuscule” amount of cryptocurrency on its balance sheet, using idle funds to purchase digital assets. The exact dollar value of the cryptocurrency sold by Reddit remains undisclosed.
The sale of Reddit’s cryptocurrency holdings took place in the third quarter, ending on September 30. Despite the sale, the company did not provide a definition of what it considers an “insignificant” amount in terms of the dollar value of its cryptocurrency portfolio.
Reddit’s decision to sell its Bitcoin and Ethereum holdings is notable, given the current market conditions and increasing institutional adoption of cryptocurrencies. The social media giant’s move could potentially influence other companies considering investing in or holding digital assets.
As of now, Reddit has not publicly commented on the specifics of the cryptocurrency sale or its future plans regarding digital assets. The company’s move to sell its holdings raises questions about its long-term strategy in the cryptocurrency space and how it perceives the role of digital assets in its financial reserves.
