In a recent filing, Reddit disclosed that it sold off the majority of its cryptocurrency holdings in the third quarter, noting that the financial impact of this sale was “immaterial” for that period. The platform continues to acquire Ether and Matic as payment for certain virtual item transactions.
By September 30, 2024, Reddit had disposed of all Bitcoin and Ether held for “treasury purposes.” However, the company hinted at the possibility of future crypto acquisitions. “We have held cryptocurrencies and experimented with blockchain technology, and may do so in the future, which could expose us to exchange risks and additional tax, legal, and regulatory requirements,” the filing stated.
Reddit also revealed that its investment strategy requires board approval for any new cryptocurrency initiatives, limiting treasury investments to Bitcoin, Ether, and other cryptocurrencies deemed non-securities by regulatory bodies like the SEC or CFTC. These decisions are based on Reddit’s own risk assessments, though they are influenced by regulatory guidance.
Additionally, Reddit plans to adopt a new accounting standard in 2025, requiring cryptocurrencies to be reported at their current fair market value rather than their original cost basis.
According to Bitcoin Treasuries, MicroStrategy, Marathon, Riot Platforms, and Tesla are among the largest corporate holders of Bitcoin.
