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Reddit sold its Bitcoin and Ethereum holdings in Q3 2023 before the latest price surge. The company’s new investment policy restricts cryptocurrency assets and requires board approval.
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Social media giant Reddit has significantly reduced its cryptocurrency holdings, according to an SEC filing released yesterday.
Reddit sold most of its Bitcoin and Ethereum holdings in the third quarter, selling the assets just before Bitcoin’s surge in October.
This week, Bitcoin hit an all-time high of $73,569, just $168 shy of its all-time high of $73,737. However, Reddit decided to liquidate its cryptocurrency holdings when Bitcoin was trading between $54,000 and $68,000.
Initially acquired as a “surplus cash” investment, these cryptoassets were described by Reddit as “immaterial,” and the proceeds from their sale followed a similar characterization.
But Reddit’s historic efforts in cryptocurrencies are no small feat.
From early adoption of community tokens like Moon to the addition of polygon-based collectible avatars, Reddit was one of the first to integrate blockchain for user engagement.
But in recent months, Reddit appears to be backing away from these efforts.
The change comes as Reddit’s investment policy requires board approval for future crypto purchases and sets limits on Bitcoin, Ethereum, or assets deemed unlikely to be classified as securities. This was done in response to this.
The filing also reveals that economic uncertainty, rising interest rates, and geopolitical factors are reducing advertising revenue from several key sectors, including technology, media, entertainment, and cryptocurrencies. Ta.
Reddit reported in February that it held “insignificant” amounts of Bitcoin and Ether funded by excess cash reserves, along with Ether and MATIC acquired for virtual goods.
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