Reddit sold its bitcoin and ethereum holdings in the third quarter of 2023 before the latest price surge.
The company's new investment policy limits cryptocurrency assets and requires board approval.
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Social media giant Reddit has significantly reduced its cryptocurrency holdings, according to the SEC presentation released yesterday.
Reddit sold most of its bitcoin and ethereum during the third quarter, shedding its assets just before bitcoin's recent surge in October.
This week, bitcoin hit a high of $73,569, leaving it just $168 shy of its all-time high of $73,737. However, Reddit decided to liquidate its cryptocurrency holdings when bitcoin was trading between $54,000 and $68,000.
Initially purchased as “excess cash” investments, Reddit described these cryptoassets as “immaterial” and the proceeds from their sale followed the same characterization.
However, Reddit's historical commitment to cryptocurrencies has been anything but minor.
From its early adoption of community tokens like Moons, to the addition of collectible Polygon-based avatars, Reddit was one of the first to integrate blockchain for user engagement.
However, in recent months, Reddit appears to be moving away from these initiatives.
The change comes as Reddit's investment policy now requires board approval for any future cryptocurrency purchases, with limitations set for bitcoin, ethereum, or assets deemed unlikely to be classified as securities.
The filing also revealed a decline in advertising revenue from several key sectors, including technology, media, entertainment and cryptocurrency, attributed to economic uncertainty, rising interest rates and geopolitical factors.
In February, Reddit reported that it held “immaterial” amounts of bitcoin and Ether, coming from excess cash reserves, along with Ether and MATIC purchased for virtual goods.
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