[NEWS] US bulletin board Reddit sells most of its Bitcoin

It has been revealed that Reddit, a major US social media network, sold most of its crypto assets (virtual currencies) in the third quarter of 2024. This was revealed in a 10-Q filing with the US Securities and Exchange Commission (SEC) submitted on the 29th.

In its IPO application in February, Reddit reported that it was holding crypto assets such as Bitcoin (BTC) using surplus funds as the source of funds. In its latest report, Reddit also claimed that there was no problem with the profits from the sale of crypto assets, stating that "the net book value of our crypto assets and the gains recognized on the sale were immaterial."

Reddit did not specify the exact amount sold, but the sale in the third quarter ending last month on the 30th means that the company missed the opportunity to maximize the value of Bitcoin's recent price surge.

This month, Bitcoin approached its all-time high of $73,737 (approximately 11.28 million yen), hitting $73,562 (approximately 11.25 million yen). During the third quarter when Reddit sold, the price of Bitcoin fluctuated between $54,000 and $68,000.

Reddit held several cryptocurrencies, including Ethereum (ETH) and Polygon (POL), which it had obtained from selling NFT avatars. Polygon is transitioning to POL, but the company has announced that it held the former MATIC.

Among social media companies, Reddit was one of the earliest adopters of Bitcoin and other cryptocurrencies, actively using them as collectibles and user engagement rewards.

Reddit has since gradually reduced its involvement in the cryptocurrency industry, handed over control of its proprietary token MOON to the community, and shut down the "Collectible Expressions" feature that was tied to Polygon-based avatars. More than 18 million of these avatars, which were launched in 2022, were issued and used to promote events such as the NFL season.

However, the Reddit app still has the digital asset wallet feature "Vault," which was introduced as part of the company's vision of "breaking new ground."

Long-term adoption of digital assets uncertain

Reddit's product and engineering teams continue to work on Bitcoin and cryptography, but the company noted uncertainty about the long-term adoption of digital assets. "We believe crypto assets and blockchain technology have great potential, but the popularity and adoption of crypto assets is a relatively recent trend, and it is uncertain whether they will continue to be adopted by consumers and businesses over the long term," the company said in a statement.

The company's response also reflects consideration of the SEC's aggressive stance on the cryptocurrency industry. Reddit's current investment policy requires board approval for any future investments in cryptocurrencies, including Bitcoin.

Reddit's stock price rose 41% on the 30th, reaching $116 per share (about 17,630 yen). Reddit beat analyst expectations, reporting a profit of $30 million, compared to a loss of $7.4 million in the same period last year.

Reference: Reddit
Image: Shutterstock

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