Key Takeaways
- Reddit bought its Bitcoin and Ethereum holdings in Q3 2023 earlier than the most recent value surge.
- The corporate’s new funding coverage limits cryptocurrency belongings and requires board approval.
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Reddit, the social media large, has considerably diminished its crypto holdings, in keeping with an SEC filing launched yesterday.
Reddit bought off most of its Bitcoin and Ethereum in the course of the third quarter, shedding its belongings simply earlier than Bitcoin’s current surge in October.
This week, Bitcoin hit a excessive of $73,569, coming simply $168 in need of its all-time peak of $73,737. Nevertheless, Reddit determined to liquidate its crypto holdings when Bitcoin was buying and selling between $54,000 and $68,000.
Initially acquired as “extra money” investments, these crypto belongings had been described by Reddit as “immaterial,” and the proceeds from their sale adopted the identical characterization.
But Reddit’s historic crypto engagement has been something however minor.
From its early adoption of neighborhood tokens like Moons, to the addition of Polygon-based Collectible Avatars, Reddit was among the many first to combine blockchain for person engagement.
Nevertheless, as of current months, Reddit seems to be pulling again from these initiatives.
The shift comes as Reddit’s funding coverage now requires board approval for any future crypto purchases, with limitations set to Bitcoin, Ethereum, or belongings deemed unlikely to be labeled as securities.
The submitting additionally revealed a decline in promoting income from a number of key sectors, together with expertise, media, leisure, and cryptocurrency, attributed to financial uncertainty, rising rates of interest, and geopolitical elements.
In February, Reddit reported holding ‘immaterial’ quantities of Bitcoin and Ether, sourced from extra money reserves, alongside Ether and MATIC acquired for digital items.
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