Reddit sold a major cryptocurrency in the third quarter. Missing Out on Bitcoin’s Uptober Gains
Reddit sold off most of its cryptocurrency portfolio in the third quarter, offloading the Bitcoin and Ethereum it once held “for treasury purposes,” according to its latest filing with the SEC.
When the social media company filed for an initial public offering (IPO) in February, the company held an “insignificant” amount of cryptocurrency on its balance sheet and used the excess cash to purchase digital assets. On Tuesday, Reddit used the same language to describe the proceeds from a recent sale.
“We sold the majority of our cryptocurrency portfolio, which primarily consists of Bitcoin and Ethereum,” Reddit said. “The net holding value of our cryptocurrencies and the perceived profit from the sale were immaterial.”
Reddit Misses Out on BTC Profits
The amount of cryptocurrency sold was not disclosed, but sales in the quarter ending September 30 suggest Reddit missed out on Bitcoin’s recent gains as the cryptocurrency approaches new all-time highs.
Bitcoin is currently trading above $72,000. Between July and September, when Reddit sold its assets, the price of Bitcoin was between approximately $54,000 and $68,000.
Reddit uncertain about cryptocurrency adoption
However, Reddit still holds some cryptocurrencies, including Ethereum and Polygon, derived from the sale of virtual avatars that exist on the Ethereum scaling network. Reddit also stated that it holds MATIC, but Polygon recently began the process of migrating the token to a new token called POL.
“We believe that cryptocurrency and blockchain technology have significant potential, but the popularity and diffusion of cryptocurrency is a relatively recent trend and it is unclear whether cryptocurrency and blockchain technology will continue to be adopted by consumers and businesses in the long term,” Reddit said. ” Reddit claimed.