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Reddit sells crypto assets before Bitcoin’s October surge

Reddit sells crypto assets before Bitcoin’s October surge

GrafaGrafa2024/10/31 10:00
By:Mahathir Bayena

Reddit recently disclosed the sale of a significant portion of its cryptocurrency holdings just before Bitcoin (CRYPTO:BTC) experienced a notable price increase in October.

The social media platform shared this information in its 10-Q filing with the U.S. Securities and Exchange Commission (SEC), revealing that it sold most of its crypto portfolio, which primarily consisted of Bitcoin and Ethereum (CRYPTO:ETH).

The filing stated, “During the three months ended September 30, 2024, we sold the majority of our cryptocurrency portfolio, which consisted primarily of Bitcoin and Ether. The net carrying value of our cryptocurrencies, as well as the gain recognised on sale, was immaterial for the periods presented.”

This disclosure coincides with Reddit trading under the ticker RDDT on the New York Stock Exchange.

The timing of the sale is noteworthy, as it occurred just before BTC’s substantial price jump in October.

Reddit’s stock surged by nearly 38% on Wednesday, reflecting growing market interest.

The company’s earlier SEC filings indicated that as of December 31, 2023, it only held Bitcoin and Ether for treasury purposes.

The filing emphasised that any investments in cryptocurrencies required approval from the board of directors, reinforcing a cautious approach to digital assets.

Reddit has had a long history with cryptocurrencies.

In 2013, the platform introduced Bitcoin payments for Reddit Gold subscriptions, a feature that was later discontinued in 2018.

The platform has also experimented with blockchain-based community points and explored non-fungible tokens (NFTs).

According to Arkham Intelligence, a wallet previously associated with Reddit once held over 1,500 ETH in 2021.

However, the wallet has since liquidated its holdings, with just over 1 ETH remaining today.

At the time of reporting, the Bitcoin price was $72,486.77.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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