The online community center Reddit revealed in a recent filing that it sold most of its cryptocurrency holdings in the third quarter, noting that the financial impact of these sales was “negligible” during the period.
The company said it acquires some cryptocurrencies for use by its product and engineering teams, limited to specific applications. Reddit had previously allocated some of its surplus funds to Bitcoin and Ether. Now the platform continues to acquire Ether and Matic as payment for transactions involving certain virtual items.
Reddit disposed of all Bitcoin and Ether it previously held for “treasury purposes” by September 30, 2024. However, he hinted that he may continue to acquire more cryptocurrencies in the future.
“We have owned cryptocurrencies and experimented with blockchain technology, and may do so in the future, which could expose us to currency exchange risks and additional tax, legal and regulatory requirements,” – he told Reddit.
The company first disclosed its holdings in cryptocurrencies earlier this year after filing with the SEC to go public under the symbol “RDDT.”
Reddit’s investment strategy requires board approval for any new cryptocurrency ventures, according to its filing. The policy limits treasury investments to Bitcoin, Ether and other cryptocurrencies that regulators such as the SEC or CFTC, or their top officials, have indicated may not be securities.
Reddit said, however, that it bases these decisions on its own risk assessments, guided but not strictly limited by regulatory signals.
In addition, Reddit announced plans to adopt a new accounting standard in 2025. This update requires cryptocurrencies to be reported at their current fair market value, rather than their original cost basis.
According to Bitcoin Treasuries, the largest corporate Bitcoin holders are MicroStrategy, Marathon, Riot Platforms and Tesla.
