Redditsoldthemajorityofitscryptocurrencyholding,mainlydominatedbyBitcoin,beforeBTCstartedpumpingupinOctober,asrevealedinitslatestSecuritiesandExchangeCommission(SEC)filing.
ThenewscomesasBitcoinhasexperiencedasignificantpricegainthatcryptocurrencytradershavecoinedtheterm‘Uptober.’
InitsSECfilingthecompanysaid:“DuringthethreemonthsendedSeptember30,2024,wesoldthemajorityofourcryptocurrencyportfolio,whichconsistedprimarilyofBitcoinandEther.”
Redditmissedthewindfallbyawhisker
RedditsolditsBitcoinatapricebetween$54,000and$68,000beforeitcouldcashinonapotentialwindfallasthecryptocurrencysoaredto$73,000.
AlthoughRedditdidnotdisclosetheamountofcryptocurrencythatwasdisposedof,itmaintainedthatthesalewasimmaterial.
“Thenetcarryingvalueofourcryptocurrencies,aswellasthegainrecognizedonsale,wasimmaterialfortheperiodspresented.”
Reddit.
Howeverthecompanysaid,theBitcoinandEthersoldintheperiodtoSeptember2024,wereonlyintheirportfolioinordertofulfilltreasurypurposes.Redditaddedthatthecompanyneedsboardapprovalinordertoexecuteanyfuturecryptocurrencyinvestmentsaccordingtoitsinvestmentpolicy.
“AnyinvestmentsbyusincryptocurrenciesfortreasurypurposesarelimitedtoBitcoin,Ether,andanyothercryptocurrencythattheSECandotherinvestmentregulatoryboardsdonotdeemtobeasecuritythroughapublicstatement,”Redditsaidinitsfiling.
Thecompanyacknowledgedthatitisdifficulttoexecuteastheyarerisk-basedjudgmentsandnotguidedbyregulatorydevelopments.
AccordingtoForbes,theBitcoin-ledcryptocurrencyrallyistheresultofacombinationoffactors.HedgefundinvestorshavebetonBitcoinasasafehavenagainstinflation,whichisprojectedtobedrivenbygovernmentpoliciesbackedbypresidentialcandidatesKamalaHarrisandDonaldTrump.
EconomistsbelievethattheworldwillseetheUSdebtsoarbytrillionsofdollarsandthattheFederalReservewhichcutinterestratesearlywillfailtotameinflation.
Ontheotherhand,thepricerallyhascoincidedwiththerisingoddsofaTrumppresidencywhichdespitehispreviousstanceonthecryptocurrencyhasemergedtobepro-Bitcoinasheisadvocatingfora‘strategicnationalBitcoinstockpile’.
JUSTIN:Redditsoldthemajorityofits#BitcoinbeforeBTCstartedpumpinginOctober—SECfilingpic.twitter.com/JGRrdf2PMK
—BitcoinMagazine(@BitcoinMagazine)October30,2024
RedditsharesralliedonstrongQ3earnings
OntheNewYorkStockExchange,Redditsharesgainedby41%onWednesdayto$116pershareafterthecompanyreporteda$30millionnetincomeforthethirdquarter.
Thethirdquarternetincomebeatestimatesandwascomingfroma$7.4millionlossinthesamequarterin2023.
ThecompanyexpectsQ4revenuetoreachbetween$385millionand$400million,abovetheaverageanalystestimateof$357.9million.
“ItwasanotherstrongquarterforRedditandourcommunitiesasweachievedimportantmilestones,includingnewlevelsofusertraffic,revenuegrowth,andprofitability.”
RedditCEOSteveHuffman.
ThefirmhasquiteahistorywithcryptocurrenciesparticularlyBitcoinandEthereum,asitbeganwithitsplanstointegrateblockchaintechnologywithinitsplatform.
RedditintroducedtheVaultcryptocurrencywalletandcollectibleavatarswhichalloweduserstoowndigitalitemsontheEthereumblockchainviaPolygon(MATIC).
However,sincethesedevelopments,thecompanyhasdistanceditselffromrecentcryptocurrencyinitiativessuchastheMoonstokenandCollectibleExpressions,whichwerelaterabandoned.
InitsSECfiling,thecompanysaidithasdoubtsaboutthelong-termadoptionofblockchain,notingcryptocurrencyspeculativerisks.TheRedditappstillcarriestheVaultwallet,andallowsuserstoaccesscryptorewards,despitethefirmreducingitscryptoinvestments.
Redditactionsindicateamorecautiousapproachtoblockchain,despiteover18milliontokensoftheircollectibleavatarshavingbeenminted.
cryptopolitan.com