2024-11-1 21:30 |
According to filings with the Securities and Exchange Commission (SEC), Reddit, the popular discussion forum and online community, has sold most of its crypto holdings. In its SEC FORM 10-Q filing, the company disclosed the sale of three digital assets, including Bitcoin and Ether.
Many observers and analysts were surprised by Reddit’s sale and recent filing with the SEC. The liquidation came weeks before Bitcoin and the rest of crypto started pumping.
Reddit’s SEC filing indicated that it sold Bitcoin at prices between $54,000 and $68,000, missing a potentially lucrative sale this week that could have fetched $73,000 or even higher.
Reddit Missed The ‘Uptober’ Surprise, Say Crypto TradersAlthough the filing of SEC FORM 10-Q is a quarterly obligation of publicly listed companies, the content of Reddit’s report was surprising and informative, at least for some crypto traders.
Records show that the company sold off most of its Bitcoin and Ether holdings before September 30th, weeks before the world’s top crypto started pumping and testing new highs.
In the same SEC filing, Reddit shared that it has sold most of its crypto portfolio, including Bitcoin and Ether. Bitcoin was sold between $53,000 and $73,000.
Although the company did not disclose the specific amount of crypto sold, it maintained that the net carrying value and gain are immaterial.
The Curious Case Of Crypto For RedditReddit also stated that its crypto holdings sold in the third quarter were only included in the portfolio for “treasury purposes.” The company also explained that it needs board approval to execute future crypto purchases and investments as part of its strategy.
Reddit further stated that their crypto investments are limited to Bitcoin, Ether, and other digital assets that are not deemed securities, per SEC statements.
According to Reddit, these investments are challenging to execute since these transactions rely on risk-based judgments, not informed by regulatory developments. Forbes and other news agencies have reported that the recent Bitcoin-led crypto rally is a product of several factors.
Reddit Share Price Surges On Solid Q3 EarningsThe stock reacted positively to Reddit’s recent filing and report. On the NYSE, Reddit stock increased by 41% this Wednesday to hit $116 per share after the company announced a $30 million net income for the current quarter.
Reddit’s reported net income beat estimates and significantly improved from last year’s $7.4 million loss in the same quarter.
Reddit is looking ahead and expects its fourth-quarter revenue to hit between $385 million and $400 million, again beating industry estimates. According to Reddit’s CEO, Steve Huffman, the company has notched a strong quarter. It continues to unlock new milestones, like revenue growth, increased number of users, and profitability.
Featured image from WIRED, chart from TradingView
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