- Reddit sold most of its Bitcoin and Ethereum in Q3 2024, citing minimal financial impact.
- Crypto sales earned Reddit $6.87M, with funds labeled immaterial in overall revenue.
- Reddit shifts its investment focus, citing economic pressures and declining ad revenue.
Reddit recently sold a large part of its cryptocurrency holdings, mainly Bitcoin and Ethereum. The sale took place in the third quarter of 2024, as detailed in a new SEC filing. This move marks a shift in Reddit’s investment approach during tough economic times.
SEC Report Shows Reddit’s Sale
The SEC filing shows Reddit sold most of its Bitcoin and Ethereum assets. It did not share exact numbers but called the impact on finances small. Reddit announced in the report that they sold most of their cryptocurrency holdings, mainly Bitcoin and Ether, in the quarter ending on September 30, 2024.
Crypto Sales Earn Reddit $6.87 Million
The report mentions that Reddit made $6.87 million from selling its crypto in Q3. This sale mostly involved Bitcoin and Ethereum, which Reddit had purchased using extra cash.
However, the company said the revenue was immaterial, meaning it did not make a big difference overall. Reddit also kept small amounts of Ethereum and MATIC tokens for specific uses.
Changes in Reddit’s Investment Policy
Since 2022, Reddit has limited its digital asset investments to Bitcoin, Ethereum, and other non-security assets, as allowed by U.S. regulators. In recent years, Reddit held a small crypto reserve to fund some product developments. However, the Q3 filing reflects a more cautious approach due to a slowing economy.
Reddit’s ad revenue has dropped in certain sectors, such as technology and media. This decline began in 2022, with global economic concerns, rising interest rates, and geopolitical issues playing a role. Reddit has managed to reduce its reliance on struggling sectors by shifting to new advertising markets.
Reddit entered the crypto space early but now sees potential risks. The company states that while it values blockchain technology, it remains unsure about the long-term role of digital assets in its business.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
