Tech Firm Meitu Buys Another $50 Million Worth of Bitcoin and Ethereum
Meitu is a software development firm listed on the Hong Kong Stock Exchange, most known for its selfie-editing app. The app was massively popular in China before adding built-in filters and editors to major social media platforms.
Since then, however, the company has struggled to find new avenues of growth. Now, the company is following other major corporations’ footsteps and buying cryptocurrency, not only because they believe the price will go up.
Hundred-Million Dollar Buy-In
Today, Meitu announced that they had made another cryptocurrency purchase, buying an additional $50 million worth of Bitcoin and Ether. According to the company’s figures, they now own 31,000 Ether and about 762.21 Bitcoins, totaling $90 million. This newest purchase came shortly after the company’s previous $40 million purchase last week.
Meitu has seen its stock price shrink massively in recent years, dropping from HK$18 in 2017 to HK$1.5 just earlier this year. As they approach their 13th year in business, the company is looking towards digital currencies as a new direction for the company. The people in charge at Meitu believe that cryptocurrencies and blockchain technology may have many advantages over existing systems and institutions, saying in an earlier statement last week:
“The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the [way] mobile internet has disrupted the PC internet and many other offline industries….
Against this backdrop, the Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash”
The earlier statement also included the announcement of a $40 million Bitcoin and Ether purchase under the company’s newly founded Cryptocurrency Investment Plan.
This plan included the option of buying up to $100 million worth of cryptocurrencies using the company’s existing cash reserves and remaining proceeds from their IPO. It remains to be seen if Meitu’s cryptocurrency investments will go beyond the initial $100M limit; however, it is safe to assume we will see more and more companies buying cryptocurrencies as other huge firms, such as Tesla, buy, as well as a hedge against cash assets.