In the third quarter of 2024, Reddit sold a significant portion of its cryptocurrency.
The bulk of the crypto assets sold by Reddit were Bitcoin (BTC) and Ethereum (ETH). This is stated in documentfiled with the US Securities and Exchange Commission (SEC).
Reddit is moving away from cryptocurrencies
Reddit owned cryptocurrency reserves, which the company had been accumulating as investments since 2022. The SEC Form 10-Q filed shows that the total value of the cryptocurrency sold was $6.87 million.
According to Reddit management, income from transactions with digital assets was not material for the reporting period.
Previously, Reddit invested part of its “free” funds in Bitcoin and Ethereum. In addition, the company also invested in Polygon’s blockchain token, POL (formerly MATIC). The platform accepted cryptocurrencies as a form of payment for virtual goods.
As a matter of corporate policy, Reddit may invest in BTC, ETH and other tokens that do not qualify as securities according to the SEC.
In addition to information on the sale of crypto assets, the report also highlights the decline in demand for crypto advertising. The company noted a drop in advertising spending from the technology, media, entertainment and cryptocurrency sectors.
Against this backdrop, Reddit is actively diversifying its advertising verticals and focusing on other areas.
Last year, the site discontinued its Community Points rewards program. As part of this initiative, Reddit users could earn cryptocurrency. The company’s management noted that it could not scale the program as intended.
Cryptocurrencies Reddit. Source: CoinGecko
During the existence of Community Points, some subreddits began to have their own coins. r/Cryptocurrency has Moons, r/FortniteBR has BRICKS, and r/ethtrader has DONUT.
In March of this year, Reddit held an initial public offering (IPO). The company has been preparing for this event since 2021.
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Source: Cryptocurrency
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