Reddit Sold Majority of Its Bitcoin Before Uptober Price Surge

According to a new filing, Reddit sold most of its crypto holdings in Q3 2024. The company held crypto assets consisting of Bitcoin and Ethereum for treasury purposes, which was revealed after it went public in February. Although described as immaterial, these digital assets were purchased with excess cash at the time. Institutional investors increased their digital asset holdings this year after the approval of spot Bitcoin ETFs.

Reddit Missed Out of Uptober Momentum

The social media giant’s disclosure that it sold crypto assets in Q3 2024 was met with criticism from digital asset enthusiasts. The filing with the Securities and Exchange Commission (SEC) noted that Reddit sold the top two digital assets with immaterial net value. However, while many scrutinize the decision, a major talking point is sales before current price sentiments.

The crypto market has gained significant traction in the last 30 days, with prices surging to levels not recorded in months. Bitcoin soared above $73,000, coming just $175 shy of its all-time high set earlier in the year. After the approval of spot Bitcoin ETFs, the industry notched increased traditional investments, leveraging the new window opened with these funds.

Subsequently, the asset faced a correction and a series of volatile months before rebounding strongly in October. At the time of writing, BTC’s price trades at $72,140, an 8.8% growth in the last seven days. This month, the market leader is up 14%, with traders raking in gains as several positions flip green. On-chain analysts hinted at more upside movements following macro and industry factors.

Company Skeptical on Crypto

Although Reddit purchased digital assets, it wasn’t in a significant position like Michael Saylor’s MicroStrategy, a firm leading the diversification drive with Bitcoin. Reddit offered users assets to reward engagement and hinted that its teams were engaged with crypto. However, it questioned the long-term trajectory of the assets class, describing the path as “uncertain.”

“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain.”

Crypto users remain popular on Reddit, giving market analysis and industry developments.