Social media platform Reddit offloaded the majority of its cryptocurrency holdings in Q3 2024, according to a recent SEC filing. The sale primarily affected the company’s Bitcoin and Ether reserves, a strategic move that aligns with Reddit’s changing approach to digital assets.
Reddit Labels Bitcoin and Ether Sales “Immaterial”
The SEC’s quarterly report, filed on Reddit’s behalf, reveals that the company’s crypto transactions were relatively minor from a financial perspective. According to the filing, “During the three months ended September 30, 2024, we sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether. The net carrying value of our cryptocurrencies, as well as the gain recognized on sale, was immaterial for the periods presented.”
In total, the sales generated $6.869 million in proceeds, reflecting a conservative approach amid a fluctuating cryptocurrency market.
Investment in Crypto as Payment Infrastructure
In addition to treasury sales, Reddit’s document disclosed a parallel strategy involving ongoing crypto acquisitions for payment purposes. While Reddit previously invested in Bitcoin and Ether, it has more recently added Ethereum (ETH) and Polygon’s token, POL (formerly MATIC), to support virtual goods transactions.
The company acknowledged that its sales of ETH and POL were “not material for the year ended December 31, 2023 or the nine months ended September 30, 2024,” indicating these transactions are intended more for practical use than investment gain.
A Balanced Approach to Digital Assets
Since 2022, Reddit has cautiously added small amounts of crypto to its reserves, seeing blockchain as a technology with “significant potential.” The company has, however, maintained a conservative stance on treasury investments, sticking to cryptocurrencies that U.S. regulators have indicated are unlikely to be classified as securities. Reddit’s crypto policies focus on BTC, ETH, and assets deemed regulatory-safe.
The social media giant’s adjustments in crypto holdings reflect a mix of long-term interest in blockchain technology and a practical response to current market conditions. While the platform still explores crypto applications in product development, it’s taking measured steps in direct investments, underscoring its cautious but engaged approach in the evolving crypto landscape.
