Reddit Reduces Crypto Holdings Before Bitcoin Surge, Signals Shift in Investment Strategy
Reddit has notably decreased its cryptocurrency holdings, as detailed in a recent SEC filing. The social media platform sold off the majority of its Bitcoin and Ethereum during the third quarter, just ahead of Bitcoin's price surge in October, which saw the cryptocurrency reach a high of $73,569—only $168 shy of its all-time high.
Reddit liquidated its crypto assets while Bitcoin was trading between $54,000 and $68,000. Initially viewed as “excess cash” investments, these cryptocurrencies were categorized as “immaterial” by the company, and the proceeds from their sale were similarly characterized.
Despite this, Reddit has had a substantial history with cryptocurrencies, being an early adopter of community tokens like Moons and incorporating blockchain technology for user engagement through features such as Polygon-based Collectible Avatars.
READ MORE: Here’s How Long It Took to Build the New Satoshi Nakamoto Statue in Switzerland
However, in recent months, the platform seems to be stepping back from these crypto initiatives. Its updated investment policy now mandates board approval for any future crypto purchases, specifically restricting them to Bitcoin, Ethereum, or assets unlikely to be classified as securities.
Additionally, the filing indicated a drop in advertising revenue from various sectors, including technology and cryptocurrency, due to economic uncertainties, rising interest rates, and geopolitical factors. In February, Reddit had reported holding “immaterial” amounts of Bitcoin and Ether as part of its cash reserves, along with Ether and MATIC acquired for virtual goods.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
