Reddit logo and the Bitcoin symbol. Source: Tomasz - stock.adobe.com

Key Takeaways:

Reddit sold the majority of its Bitcoin and Ethereum holdings in Q3 2024, generating $6.87 million, though the gains were minimal.
The company maintains a small cryptocurrency portfolio, primarily for engineering and product development needs, and favors assets like Bitcoin and Ether due to regulatory clarity.
Reddit’s ad revenue has declined due to global economic uncertainties, prompting the company to diversify its advertising categories.

Reddit has offloaded most of its cryptocurrency assets, mainly Bitcoin and Ethereum, due to minimal gains from these holdings, as per its third-quarter 2024 report filed with the SEC.

This move saw Reddit selling nearly all its cryptocurrency portfolio, with proceeds amounting to $6.869 million by September 30, though the financial impact of these sales was described as “immaterial.”

JUST IN: Reddit sold the majority of its #Bitcoin before BTC started pumping in October — SEC filing pic.twitter.com/JGRrdf2PMK
— Bitcoin Magazine (@BitcoinMagazine) October 30, 2024

Initially, Reddit invested in Bitcoin, Ether, and Polygon’s MATIC for select payment options and as an experimental cash reserve, though these digital assets played a minor role in its finances.

Reddit also faces a reduced advertising revenue attributed to global economic instability, rising interest rates, and geopolitical issues, which have particularly impacted ad spending in sectors like tech and cryptocurrency.

As a countermeasure, Reddit is broadening its ad focus to other industries to help offset these downturns.

Though it remains cautious with crypto investments, Reddit’s IPO filing underscores its belief in blockchain’s future potential for its platform.

The company prioritizes regulatory compliance by limiting investments to assets unlikely to be classified as securities.