Reddit Cuts Down on Crypto Holdings, SEC Filing Reveals

The social platform sold off a large portion of its cryptocurrency assets, primarily Bitcoin BTC $87,082.23 and Ethereum ETH $2,060.35 .

The filing revealed that the sale of cryptocurrencies generated approximately $6.869 million in proceeds during the three-month period ending on September 30.

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The company's policy on digital asset investments confines treasury holdings to Bitcoin, Ethereum, and other cryptocurrencies that US regulators have indicated are unlikely to be classified as securities.

Reddit previously invested some of their excess cash in BTC and ETH to acquire Ethereum and Polygon's token POL (formerly known as MATIC)  MATIC $0.2242 as a form of payment for certain virtual goods.

In the SEC filing, the company stated that the sales of Ethereum and POL "was not material for the year ended December 31, 2023 or the nine months ended September 30, 2024."

Reddit further pointed out:

We also acquired and hold digital assets that are cryptocurrencies for use by our product and engineering teams, which is limited to specific uses.

This cautious stance reflects the company's adherence to regulatory guidance and a focus on minimizing potential risks associated with digital asset investments.

In other news, Tether's CEO Paolo Ardoino disclosed the company's asset reserves to counteract allegations of legal violations.