Reddit, the popular social media platform, has revealed that it sold the majority of its cryptocurrency holdings, primarily Bitcoin and Ethereum, during the third quarter of 2023. The move comes as a surprise, especially considering the significant price surge of Bitcoin in October, a period often referred to as “Uptober” by crypto enthusiasts.
The company disclosed this information in a recent SEC filing, stating that the net carrying value of the sold cryptocurrencies and the subsequent gain were deemed “immaterial.” While the exact dollar amount of the sold assets remains undisclosed, it’s clear that Reddit missed out on substantial potential profits.
Despite this significant sell-off, Reddit hasn’t completely abandoned its interest in cryptocurrency. The company continues to hold Ethereum and Polygon tokens derived from the sale of virtual avatars. However, it has expressed uncertainty about the long-term viability of cryptocurrencies and blockchain technology.
This strategic shift aligns with Reddit’s recent focus on profitability. The company reported a net income of $30 million in the third quarter, a significant improvement over the previous year.
