Social media giant Reddit recently sold most of its Bitcoin holdings before a significant October price increase, according to a filing with the Securities and Exchange Commission (SEC) on Tuesday. This decision has led to Reddit missing out on substantial gains during the period, known as “Uptober,” when Bitcoin experienced a strong rally.

In its SEC filing, Reddit confirmed it had sold off “the majority of [its] cryptocurrency portfolio,” during the third quarter ending September 30. Reddit described both the net carrying value of the Bitcoin and the recognized gains from the sale as “immaterial.” However, the company did not disclose specific figures regarding the volume or value of the assets sold.

During the period from July to September, Bitcoin traded between roughly $54,000 and $68,000, but it surged in October, reaching nearly $73,562—just shy of its all-time high of $73,737. Reddit’s decision to sell before this price increase meant that it missed out on potential gains associated with Bitcoin’s October rally.

Reddit’s shift away from Bitcoin extends beyond asset sales. The company discontinued several crypto-related initiatives, including its Collectible Avatars and the Collectible Expressions feature, previously available on its platform. Although Collectible Avatars saw early success, with 18 million minted by mid-2023, the company has since opted to reduce its active involvement in this space.

Decrypt Article