Reddit Sold Top Crypto in Q3; He missed Bitcoin’s Uptober discoveries.
In its latest filing with the SEC, Reddit revealed that it sold most of its cryptocurrency portfolio during the third quarter, liquidating bitcoin and ethereum that were once held for “treasury purposes.”
When the social media company made its initial public offering in February, the company used surplus cash to buy digital assets and had a “worthless” amount of crypto on its balance sheet. On Tuesday, Reddit used similar language to describe the proceeds from a recent sale.
“We have sold the majority of our cryptocurrency portfolio, which primarily consists of Bitcoin and Ether,” Reddit said. “The value of our cryptocurrency and the profit recognized on the sale is worthless.”
Reddit loses out on BTC gains.
While the amount of cryptocurrency sold was not disclosed, the sell-off during the quarter ending September 30 has eclipsed recent gains in Bitcoin, as it nears a new all-time high.
Bitcoin is currently trading above $72,000. Between July and September, when Reddit sold its assets, the price of bitcoin was roughly between $54,000 and $68,000.
Reddit Uncertain on Crypto Adoption
However, Reddit still holds some crypto, including Ethereum and Polygon, which are derived from the sale of virtual tokens on the Ethereum scaling network. Reddit says it will retain MATIC, although Polygon will soon begin the process of transitioning Talk to POL.
“While we believe cryptocurrencies and blockchain technology have great potential, the popularity and expansion of cryptocurrencies is a relatively recent trend, and it is uncertain whether cryptocurrencies and blockchain technology will continue to be used by consumers and businesses in the long term,” Reddit asserted.
