3 years ago
144 The latest reports from Reuters and Bloomberg indicate that China’s photo retouching app listed in Hong Kong, Meitu, has acquired $40 million worth of Ethereum and Bitcoin cryptocurrencies.
After the announcement about the crypto purchase on March 8, 2021, Meitu shares gained almost 15%. This is the latest company to invest in digital assets after Tesla’s staggering $1.5 billion investment in bitcoin in February. At the time, the announcement that Tesla had invested in bitcoin pushed the BTC price up by almost 20%.
Meitu has been listed since 2016 on the Hong Kong Stock Exchange (HKEX). It has now become the first publicly-listed Chinese firm to disclose its cryptocurrency acquisition. Based on a March 7 filing, Meitu acquired nearly $18 million worth of Bitcoin and $22 million worth of ETH on March 5.
These acquisitions are a part of the company’s wider plan to tap up to $100 million of its cash reserve to fund cryptocurrency purchases. It will also use the funds to prepare to enter the budding blockchain sector since it is optimistic that the prices had massive potential to grow exponentially, and virtual assets may diversify its portfolio.
Meitu is also studying the feasibility of integrating blockchain technologies into several of its international businesses, which may include multiple ventures on the Ethereum blockchain network.
The Chinese tech firm’s board of directors is positive that Ether and Bitcoin will perform well in the future. Bitcoin Peers quoted the board as saying:
“The board currently decided to invest in the two largest cryptocurrencies by market capitalization, which the board believes should enhance shareholder value in the long-term.”
Founded in 2008, Meitu is among the most famous mobile apps in China with a market cap of $1.5 billion. As of June 2021, the company held around 2.5 billion yuan ($385 million) in cash and liquid financial reserve. Also, it had nearly 300 million self-reported monthly active users.
