Reddit Dumps BTC and ETH Worth $6.8 Million, But Still Hodls MATIC

Social media platform Reddit sold a chunk of its crypto holdings during the third quarter of this year, a filing with the US Securities and Exchange Commission (SEC) has revealed.

Reddit Dumps BTC and ETH Worth $6.8 Million

The firm acquired a significant amount of digital assets, which were purchased using excess cash, when it conducted an initial public offering in February. However, a document submitted to the SEC on Tuesday showed that Reddit had sold $6.8 million worth of Bitcoin and Ethereum during the Q3. Despite realizing gains, the social media company said they were ‘immaterial.’

Considering Reddit cashed out its Bitcoin between July and September, it means the firm missed out on the recent gains recorded by the coin, which came $170 short of its peak price ($73,721) on Tuesday. In Q3, Bitcoin’s price ranged between $54,200 and $68,500.

It is worth noting that Reddit is still holding another crypto, POL, which was formerly known as MATIC. In its SEC filing, the firm stated that the digital asset was generated from the sale of virtual avatars, which reside on the Polygon, a leading Ethereum layer-2 network.

Is Reddit Abandoning Its Crypto Ambitions?

Reddit started minting virtual avatars in 2020, joining a handful of mainstream companies that were exploring blockchain technology at the time. A year later, the social media platform introduced a token called Moons to reward users. However, the digital currency was dropped by the company in November 2023, with the project being taken over by the Reddit community.

Three months ago, Reddit took a further step back from crypto when it removed its ‘Collectible Expression’ section that featured NFTs created on Polygon in 2022. Notably, these NFTs were highly sought after during their early days, at one point selling for $1,000 a piece on various trading platforms.

When asked about Reddit’s pivot away from crypto, a representative of the firm told crypto-focused news house CoinTelegraph that the future of the blockchain space was uncertain due to a lack of clear regulatory framework in several countries, including the United States. The Reddit representative, however, said the company’s engineering team would continue to use crypto technology to some extent.

While Reddit has scaled back a number of its crypto projects, its mobile app still features the Vault Web3 wallet, which supports Polygon-compatible digital assets.

Reddit Board of Directors to Approve Future Crypto Investments

Moving forward, the social media platform says any future crypto investment will need the approval of the board of directors. Furthermore, the company will only consider investing in non-security coins like Bitcoin and Ethereum.

Following Reddit’s filing with the SEC, the company’s stock rose by 42% on Wednesday, reaching $115. In addition, the firm reported a net income of $30 million during quarter three. By comparison, Reddit posted a loss of $7.5 million in Q3 of 2023.

Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions.

Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

The above is the detailed content of Reddit Dumps BTC and ETH Worth $6.8 Million, But Still Hodls MATIC. For more information, please follow other related articles on the PHP Chinese website!