Chinese App Meitu Buys Bitcoin and Ethereum Worth $40 Million

Meitu, a Chinese photo retouching app listed in Hong Kong, announced it has purchased $40 million worth-of Bitcoin and Etereum.

March 8, 2021 | AtoZ MarketsHong Kong-based smartphone and mobile app company Meitu bought 15,000 ETH for $22 million and 379 BTC for $17.9 million to diversify its investment portfolio.

Meitu follows the likes of electric car company Tesla and Square in purchasing Bitcoin. But the Chinese appmaker appears to be the first major company to buy ether, a cryptocurrency that works on the ethereum blockchain.

Meitu Plans to Buy More Bitcoin

According to the document released by Meitu, the company plans to invest up to $100 million in cryptocurrencies from its own reserves. Subsequent purchases or sales of cryptocurrencies will be carried out in accordance with the company’s investment plan and market conditions.

Meitu’s management has compared blockchain technology to the rise of the Internet and believes that blockchain can bring about a qualitative change in the financial and technology industry. The company is ready to become a participant in the “technological revolution” by investing in two of the largest cryptocurrencies by market capitalization – ether and bitcoin. Meitu sees this as a necessity due to the “aggressive” printing of money by various central banks, which leads to the depreciation of fiat currencies.

Meitu describes the ETH purchase as preparation for integrating the Ethereum blockchain into its business processes. This network attracts the company by the fact that a large number of decentralized applications (dApps) are being created on Ethereum. In addition, the developers are looking to modernize the network by gradually rolling out the Ethereum 2.0 update. The company is ready to invest in other blockchain-based projects that interact with Ethereum. When it comes to Bitcoin, Meitu sees it as a reliable tool for safeguarding savings and effectively hedging risks that rivals gold and real estate.

Meitu believes that due to the limited supply of coins, Bitcoin will be in even greater demand among institutional investors. This is confirmed by the fact that many companies are already investing in Bitcoin or are beginning to accept cryptocurrencies as payment for goods and services. Many reputable banks are opening cryptocurrency divisions and developing a cryptoasset management platform, as New York-based BNY Mellon did. Regulators have begun to license cryptocurrency trading platforms. Everything speaks in favor of digital assets and increases investor confidence in them.

As a reminder, Meitu assessed Bitcoin’s potential back in 2018 by buying 10,000 BTC during a bear market.

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