Most bots actually would continue working, the free API allows for 100 requests a minute which for most is enough, and they have been manually adding exemptions for moderation bots that need more. The question is if the creators are willing to continue supporting them, for free, in the future. Plenty understandably do not.
Also currently being a moderator (of any subreddit) allows you to bypass both the the rate limit and NSFW sub ban - which itself seems to be a manual list of mostly porn subs, as most of the subs that are nsfw as a protest still work so it isn't a blanket ban.
If you buy a house with a loan and pay it back, you haven't turned a profit either - but you do now own a house that has a theoretical value. That's basically how these things work, investing everything on growing the company in the hopes that some day what they have built can start creating profit, or be sold to someone who thinks they can.
A houses value is not theoretical though. You own land and a roof to live under
But that doesn't mean you can turn a profit from it, or even break even. If you want to do that you have to sell it to someone, and there are multiple reasons why you might not be able to - maybe you spent too much money renovating it and now nobody wants to pay that much. Maybe a bunch of new housing was built and the value crashed. Maybe Detroit happened and the location and land it sits in is literally worthless and nobody wants to live there. - until you actually find a buyer for it all houses have only a theoretical value, as do all companies.
why sell the company instead of enshittifying your platform yourself?
Because it's a lot easier to find someone who thinks they can do it than it is to actually successfully do it yourself - as we are currently seeing with how wonderfully incompetent Spez is with Reddit.
When Yahoo bought Tumblr for $1.1 billion in 2013 - only to sell it for $3 million in 2019 - was Tumblr bringing in millions and millions of profit? No. But Yahoo thought that they would be able to make it.
Elon Musk paid $44 billion for Twitter, it hasn't turned any profit either (and never will enough for him to get his moneys worth, but that's just because Musk is an idiot).
But yeah, quite often it does feel like a scam. Or kinda like... gambling? You hope someone will pay a lot for your company, while they hope they can make it turn wildly profitable, both may or may not come true.
Reddit mods fear spam overload as BotDefense leaves “antagonistic” Reddit ( arstechnica.com )
Fidelity has cut Reddit valuation to $5.5B from $10B ( techcrunch.com )