Reddit has informed the US Securities and Exchange Commission (SEC) that it has sold off the majority of its accumulated cryptocurrencies. The platform stated that as of September 30, 2024, they had sold all previously owned bitcoin (BTC) and ether (ETH) for treasury purposes.
The sale of these cryptocurrencies by Reddit was carried out amidst various financial and regulatory considerations. The net value and recognized gains from these crypto assets were deemed irrelevant for the periods presented in the filing.
Reddit’s investment policy mandates board approval for future cryptocurrency investments. The platform’s investment in cryptocurrencies for treasury purposes is limited to BTC, ETH, and other investments that regulatory authorities determine not to be securities.
Cryptocurrencies, which lack physical form and depend on blockchain technology, come with unique risks like cybersecurity threats and technological obsolescence, as highlighted by Reddit.
Reddit has taken measures to safeguard its digital assets, acknowledging that human or technological errors could lead to the loss or destruction of private keys required to access the cryptocurrencies.
While Reddit recognizes the potential of cryptocurrencies and their technology, it also acknowledges the uncertainty surrounding their future adoption by consumers and businesses.
In contrast to the growing institutional investment in bitcoin, Reddit emphasizes the uncertainty surrounding future cryptocurrency adoption, despite institutional interest and integration by major banking institutions.
Reddit also mentions the increasing attention on the use of cryptocurrencies for illicit activities and the environmental risks they pose, emphasizing the unclear legal and regulatory status of many coins in various jurisdictions.
Lastly, Reddit points out that developments can negatively impact the value of cryptocurrencies and the platform’s ability to transact with them in the future.
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