The post Reddit offloads majority of its Bitcoin holdings: Here’s what happened appeared on BitcoinEthereumNews.com.

Reddit divested most crypto holdings before Bitcoin’s recent surge, raising timing questions. A new investment policy restricted future cryptocurrency purchases to approved assets only. In an SEC filing on the 30th of October, Reddit disclosed selling most of its cryptocurrency holdings during Q3. Reddit offloaded a significant portion of its Bitcoin [BTC] and Ethereum [ETH] assets. The platform noted that the financial impact was “immaterial,” as the sale occurred before BTC’s late October surge. Reddit’s crypto sell-off Reddit further clarified that it acquired specific cryptocurrencies primarily for its product and engineering teams, utilizing them for targeted applications. Previously, the platform invested excess funds in Bitcoin and Ethereum. Now, it focuses on acquiring other altcoins for payments on certain virtual items. By the 30th of September, Reddit had completely disposed of all BTC and ETH holdings designated for “treasury purposes.” However, the company has indicated that it remains open to acquiring more cryptocurrencies in the future. The firm noted, “We have held cryptocurrencies and experimented with blockchain technology, and may do so in the future, which may subject us to exchange risk and additional tax, legal, and regulatory requirements.” The sell-off timing and its impact This decision coincided with Bitcoin reaching $73,569 this week, just $168 below its all-time peak of $73,737 in March.  But it should be noted that at press time, BTC was trading at $72,322.50, according to CoinMarketCap. Reddit liquidated its crypto holdings while Bitcoin was fluctuating between $54,000 and $68,000. This raised questions about the timing of its divestment amid the current market surge.  However, in recent months, the platform seems to be scaling back its crypto initiatives. This is reflected in its new investment policy that mandates board approval for any future cryptocurrency purchases. The company has restricted its acquisitions to BTC, Ethereum, or assets unlikely…

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Filed under: News - @ October 31, 2024 8:27 pm