The latest filing with the SEC has revealed that Reddit has sold the majority of its cryptocurrency portfolio during the third quarter, offloading Bitcoin and Ethereum once held “for treasury purposes.”
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, purchasing digital assets using 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
While the amount of cryptocurrency sold is not disclosed, the sale taking place during the quarter ending September 30 implies that Reddit missed out on the latest gains seen by Bitcoin, as it is closely approaching a new all-time high.
Bitcoin is currently trading above $72,000. Between July and September, during which Reddit sold its assets, the price of Bitcoin ranged between approximately $54,000 and $68,000.
Reddit Uncertain Over Crypto Adoption
However, Reddit still holds some crypto including Ethereum and Polygon derived from the sale of virtual avatars, which 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.