Reddit Bitcoin Stash Sells and Ranks from Crypto: Details

Reddit, a pioneering social media force and the most popular discussion forum for crypto engagement, has unloaded a large portion of its virtual asset in the third quarter of 2024.

In its latest regulatory filing, the company said it sold most of its Bitcoin (BTC) and Ethereum (ETH) treasury assets, generating $6.87 million.

Reddit Hits profit

The net proceeds from the sale helped Reddit turn a profit for the first time in 19 years, just under $30 million.

It first disclosed crypto investments in a February 2024 IPO filing with the Securities and Exchange Commission (SEC), revealing that it invested some of its surplus funds in several cryptocurrencies, including BTC, ETH, and Polygon (MATIC).

According to that filing, ETH and MATIC are primarily intended for making payments for certain virtual goods.

At the time, the net carrying value of the assets in question was “immaterial,” he said. The social platform has indicated that it will not invest in any other cryptocurrencies until the relevant authorities confirm that they are not securities.

Over the years, the platform has had a strong connection to crypto, being one of the first places to experiment with blockchain technology. Some memorable milestones include the decision in 2013 to accept premium membership fees using crypto.

Additionally, in 2020, it launched a community points system based on Ethereum, pioneering participation in digital assets. The system consisted of two tokens, MOON and BRICK, which the social network used to encourage contributions in certain sub-texts.

The company later developed a blockchain-based wallet called “Vault”, which allowed users to manage the two tokens and other digital collections. Following this, polygon-based NFT models were released in 2021.

Withdrawal from Crypto-driven strategies

However, in its latest filing with the SEC, Reddit has expressed a growing attitude towards crypto assets. The company acknowledged the industry's “significant potential” and said it was concerned about uncertainty about long-term adoption.

It also reinforced its cautious stance by updating its investment policy to require board approval for any future crypto purchases, which would be limited to Bitcoin, Ethereum and other non-security tokens.

What's more, the platform has since ditched its community points system, citing the challenges of raising the bar. It has also dropped its acceptance of cryptocurrency for payment, reflecting the gradual decline of blockchain initiatives that previously engaged users.

Interestingly, Reddit's decision to divest came before Bitcoin's recent rally, which saw the asset horribly close to a record high of $73,737.