Yesterday, Meitu announced that they had made another cryptocurrency purchase of Bitcoin and Ethereum worth $50 million. According to the company, they now own 31,000 ethers and roughly 762.21 bitcoin, for a total of $90 million. This final acquisition was made shortly after the company bought some cryptocurrencies for $40 million last week.
Meitu’s share price has fallen sharply in recent years, from 18 Hong Kong dollars in 2017 to 1.5 Hong Kong dollars earlier this year. As they approach their 13th year in business, the company sees digital currencies as a new direction for the company. The head of Meitu believes that cryptocurrency and blockchain technology can have many advantages over existing systems and institutions. Earlier last week he said in a statement:
“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”
Previous announcements also included the announcement of the purchase of Bitcoin and Ethereum for $40 million under the company’s newly established Cryptocurrency Investment Plan.bThe plan includes the option to use the company’s existing cash reserves and remaining proceeds from the IPO to purchase cryptocurrencies worth up to $100 million.
Meitu is a software development company listed on the Hong Kong Stock Exchange and is known for its selfie editing application. Before adding built-in filters and editors to major social media platforms, the app was massively popular in China.
Since then, however, the company has struggled to find new ways to grow. Now the company is following in the footsteps of other big companies and buying cryptocurrencies.