In a surprising twist within the world of cryptocurrency, Reddit, the renowned online forum and community platform, has executed a significant sale of its digital assets. According to recent filings with the Securities and Exchange Commission (SEC), Reddit divested most of its cryptocurrency holdings, including major players like Bitcoin and Ether. This move has caught the attention of market observers and analysts alike.
Reddit’s Unexpected Crypto Liquidation
The details emerged from Reddit’s SEC FORM 10-Q filing, which is a routine quarterly disclosure for publicly traded companies. However, the content of Reddit’s report was far from ordinary. The company revealed that it had sold off a substantial portion of its Bitcoin and Ether holdings well before the end of September, a period that preceded the subsequent surge in cryptocurrency values.
This decision meant that Reddit sold Bitcoin at prices ranging from $54,000 to $68,000, missing out on a potentially more lucrative sale at $73,000 or higher during the recent market upswing.
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Reddit Missed The ‘Uptober’ Surprise, Say Crypto Traders
Crypto traders and analysts were taken aback by Reddit’s timing, as the company liquidated its crypto holdings just weeks before the market experienced significant gains. This decision was particularly intriguing given the timing of the Bitcoin-led market rally, which surprised many in the industry.
Reddit’s SEC filing also highlighted that the company had sold its crypto portfolio, including Bitcoin and Ether, at prices between $53,000 and $73,000. Although specific amounts were not disclosed, Reddit maintained that the financial impact was immaterial.
The Curious Case Of Crypto For Reddit
According to the filing, Reddit’s digital assets were held primarily for “treasury purposes.” The company further emphasized that any future crypto purchases or investments would require board approval, aligning with its strategic approach to digital assets.
Reddit’s crypto investments are concentrated on Bitcoin, Ether, and other digital assets that are not classified as securities, as per SEC guidelines. These investments entail inherent risks, and Reddit acknowledges the challenges posed by the absence of clear regulatory guidance.
The recent Bitcoin-led rally has been attributed to various factors, as reported by Forbes and other news outlets. Despite the complexities, Reddit remains committed to exploring opportunities in the evolving crypto landscape.
Reddit Share Price Surges On Solid Q3 Earnings
In light of Reddit’s strategic decisions and recent SEC filing, the company’s stock experienced a notable uptick. On the New York Stock Exchange (NYSE), Reddit’s stock price surged by 41% to reach $116 per share after the company announced a $30 million net income for the current quarter. This marked a significant improvement from the previous year’s $7.4 million loss during the same period.
Looking ahead, Reddit anticipates fourth-quarter revenue to fall between $385 million and $400 million, surpassing industry expectations. According to Reddit’s CEO, Steve Huffman, the company has achieved a robust quarter, marked by revenue growth, increased user engagement, and profitability milestones.
