The latest filing with the SEC revealed that Reddit sold off most of its cryptocurrency portfolio in 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 had an “intangible” amount of cryptocurrency on its balance sheet, buying digital assets with excess cash. On Tuesday, Reddit used the same language to describe the proceeds from the recent sale.
“We have sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether,” Reddit said. “The net book value of our cryptocurrencies, as well as the gain realized on the sale, were not material.”
Reddit is missing out on BTC profits
While the amount of cryptocurrency sold is not disclosed, the sales that occurred during the quarter ending September 30 imply that Reddit missed Bitcoin’s latest gain as it is close to a new all-time high.
Bitcoin is currently trading above $72,000. Between July and September, when Reddit sold its assets, Bitcoin’s price fluctuated between about $54,000 and $68,000.
Reddit unsure about crypto adoption
However, Reddit still owns a number of cryptocurrencies, including Ethereum and Polygon, derived from the sale of virtual avatars, which exist on the Ethereum scaling network. Reddit also revealed that it owns MATIC, although Polygon recently started migrating its token to a new one called POL.
“While we believe that 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 be adopted by consumers and businesses in the long term is uncertain,” according to Reddit.