Chinese App Meitu Buys 175 Bitcoins Worth $10 Million

Meitu, a Chinese company that makes a photo editing app, bought approximately 175 bitcoins, the total value of around $10 million.

April 9, 2021 | AtoZ Markets Hong-Kong tech company Meitu increased the total value of its cryptocurrency assets to nearly $100 million after it announced on April 8 that it purchased an additional $10 million worth of Bitcoin (BTC).

Meitu HK, wholly owned by Meitu company, announced that it purchased 175,67798279 units of bitcoins worth $10 million. Accordingly, approximately $57,000 seems to have been paid per BTC. It was reported that the purchase was made at spot prices in the open market, using existing cash reserves.

Last month, Meitu purchased $90 million worth of cryptocurrencies, including Bitcoin and Ether (ETH). Following the last purchase on Thursday, the firm has acquired $49.5 million worth of BTC and $50.5 million worth of Ethereum.

The company has previously stated that it cannot make previous purchases without the help of the US-based cryptocurrency exchange Coinbase. Coinbase was not mentioned in the latest statement, but the exchange had stated in the past that it managed the investments of other institutional entities such as MicroStrategy.

The disclosure laid out the firm’s reasons for adding to its Bitcoin holdings, comparing the technology’s potential impact to that of the mobile internet:

The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries.”

The disclosure notes Bitcoin’s utility as a store of value, a feature helped by its limited supply. Also mentioned are its portability and its position as a hedge against inflation caused by the aggressive money printing practices of central banks.

Some of these features potentially even render Bitcoin as a superior form to other alternative stores of value such as gold, precious stone and real estate. Being an alternative store of value, its price is primarily a function of future demand that is driven by consensus of investors and the general public,” states the disclosure statement.

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