Reddit Reports $6.8 Million Sale of Majority Crypto Portfolio
This is a segment from the Empire newsletter. To read full editions, subscribe.
Crypto Earnings Season Update
Wall Street's earnings season provides insights into public crypto companies. Recent earnings reports reveal two key points.
Coinbase Performance
Coinbase reported $1.2 billion in revenue, slightly below analyst expectations of $1.25 billion but nearly double last year's $674 million. Executives, including Brian Armstrong, expressed optimism about business performance and highlighted the importance of regulatory clarity for capital inflow.
Trading volume decreased 18% quarter-over-quarter to $185 billion, a critical metric to monitor as market conditions evolve.
Reddit's Crypto Sale
In an SEC filing, Reddit disclosed selling the majority of its crypto portfolio, primarily consisting of bitcoin and ether, for approximately $6.8 million. The specific distribution between the two cryptocurrencies was not detailed. Previously, Reddit had invested excess cash reserves in crypto assets, including MATIC.
Overall, Coinbase's results suggest a potentially strong fourth quarter, while Reddit’s divestment indicates a shift away from holding crypto assets.