TechFlow news, October 31 — According to Cointelegraph, Reddit's latest filing with the U.S. Securities and Exchange Commission (SEC) reveals that the company sold the majority of its cryptocurrency holdings, primarily Bitcoin and Ethereum, during the third quarter of 2024. The report states that cryptocurrency sales generated $6.869 million in revenue for the quarter, with transaction gains described as "immaterial."
The filing discloses that Reddit began allocating a portion of its idle funds into cryptocurrencies starting in 2022. The company’s investment policy limits treasury investments to Bitcoin, Ethereum, and cryptocurrencies explicitly indicated by U.S. regulators as "potentially not qualifying as securities." Additionally, the company continues to accept Ethereum and Polygon (POL) as payment for certain virtual goods.
In the filing, Reddit noted that advertising spending in the technology, media, entertainment, and cryptocurrency sectors has continued to decline since the fourth quarter of 2022, mainly due to global economic concerns, rising interest rates, and geopolitical uncertainty. However, the company stated that it has partially offset this impact through diversification of its advertising business.
