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Chinese Tech Company Puts $40 Million Into Bitcoin and Ethereum

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Sun, 03/07/2021 - 12:47
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Alex Dovbnya
Chinese tech company Meitu now has $40 million worth of Bitcoin and Ethereum on its balance sheet
Chinese Tech Company Puts $40 Million Into Bitcoin and Ethereum
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Corporate adoption of cryptocurrencies is apparently spilling over into Asia. 

Chinese tech company Meitu has purchased $22.1 million worth of Bitcoin and $17.9 million worth of Ethereum with its cash reserves, according to a March 7 press release. It is the very first Hong Kong-listed company to make such a move.   

Its board of directors has agreed to invest up to $100 million into cryptocurrencies.  

Meitu—whose hit photo-editing app boasts 456 million users—compares the disruptive potential of blockchain to that of the internet. It believes that the industry is still in its early stage, likening it to the mobile internet in 2005.

Meitu
Image by @meituofficial

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Meitu wants to venture into blockchain 

The board predicts that the two largest cryptocurrencies will be able to appreciate in the future, which is the main reason behind the investment:

Notwithstanding the long-term prospects, cryptocurrency prices in general are still highly volatile and therefore the Board currently decided to invest in the two largest cryptocurrencies by market capitalization, Ether and Bitcoin, which the Board believes should enhance shareholder value in the long-term.

Moreover, it wants to venture into the blockchain industry itself by launching Ethereum-powered decentralized applications (dApps):   

The Group is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including but not limited to launching Ethereum-based dApps, as well as identifying suitable overseas blockchain-based projects for potential investments.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.