Reddit Sold the Majority of Its Bitcoin and Ethereum Portfolio Before BTC Started Pumping

When the social media company filed for an initial public offering in February, the company held an “immaterial” amount of crypto on its balance sheet

Reddit has sold the majority of its cryptocurrency holdings during the third quarter, according to the latest filing with the SEC.

JUST IN: Reddit sold the majority of its #Bitcoin before BTC started pumping in October — SEC filing

When filing for an initial public offering in February, the social media company had an “immaterial” amount of crypto on its balance sheet. The company purchased digital assets with excess cash. On Tuesday, Reddit used the same language to describe proceeds from the recent sale.

“We sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether,” Reddit stated. “The net carrying value of our cryptocurrencies, as well as the gain recognized on sale, was immaterial.”

Reddit Misses Out On BTC Gains

The amount of cryptocurrency sold is not disclosed in the filing. However, the sale took place during the quarter ending on September 30, which suggests that Reddit may have missed out on the latest gains seen by Bitcoin.

Currently, BTC is trading at close to a new all-time high.

On Tuesday, Bitcoin is trading at over $72,000. Between July and September, during which Reddit sold its assets, the price of Bitcoin ranged from approximately $54,000 to $68,000.

Reddit Uncertain Over Crypto Adoption

After the sale, Reddit still holds some crypto, including Ethereum and Polygon, which were derived from the sale of virtual avatars that exist on the Ethereum scaling network. Reddit also revealed that it holds MATIC, though Polygon recently began the process of migrating its token to a new one called POL.

“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain,” Reddit asserted.

The above is the detailed content of Reddit Sold the Majority of Its Bitcoin and Ethereum Portfolio Before BTC Started Pumping. For more information, please follow other related articles on the PHP Chinese website!