Reddit has sold off the bulk of its cryptocurrency holdings, primarily Bitcoin and Ether, in the third quarter of 2024, according to a recent filing with the U.S. SEC.
The 10-Q filing reveals that while the sales provided proceeds of approximately $6.869 million, the net carrying value of these assets and any recognized gains from the sale were deemed “immaterial” for the reporting period ending September 30, 2024.
Reddit Sells Majority of Crypto Holdings Including Bitcoin & Ether
The decision to liquidate follows a period of uncertainty for Reddit, with the filing citing a noticeable decline in advertising revenue from industries such as technology, media, entertainment, and cryptocurrency.
Reddit attributed the drop in revenue to economic pressures, rising interest rates, and geopolitical factors affecting the advertising landscape.
This recent sale aligns with Reddit’s cautious approach toward cryptocurrency holdings. Back in February, Reddit described its holdings of Bitcoin and Ether as “immaterial,” acquired largely from excess cash reserves.
While Reddit has retained some Ethereum-based assets, Arkham Intelligence reported that a wallet once connected to Reddit held over 1,500 ETH in 2021. However, most of those holdings were liquidated three years ago, leaving the wallet with only 1.084 ETH at present.
Reddit and the Cryptocurrency Space
Reddit’s relationship with cryptocurrency stretches back more than a decade. In 2013, Reddit became one of the earliest social media platforms to experiment with cryptocurrency payments, allowing users to purchase Reddit Gold memberships using Bitcoin through a Coinbase partnership. However, this feature was discontinued in 2018 as Reddit explored new strategies for integrating digital assets.
In 2020, Reddit introduced its Community Points system, a more significant step toward integrating blockchain technology. The system incentivizes participation within specific subreddits by awarding users with Ethereum-based tokens, MOON and BRICK, for their contributions.
Reddit continued to explore blockchain applications in 2021, launching a blockchain wallet named “Vault” to allow users to store community points and collectibles securely. The platform also introduced Polygon-based NFT avatars in 2022, furthering its foray into digital collectibles.
As Reddit navigates changing economic conditions and uncertain cryptocurrency markets, the company’s decision to offload its digital assets could signal a more cautious stance.
However, its enduring support for blockchain-driven community engagement suggests that Reddit remains invested in fostering crypto participation, even as it reduces its direct exposure to market fluctuations.