One of China’s largest internet application makers, Meitu Inc., is adding $ 100 million in cryptocurrencies to its treasure, joining a growing list of companies worldwide to do so. The company has already purchased $ 40 million in bitcoin and ether for its balance sheet.
Chinese public company adds bitcoin and ethereum to treasury reserves
Chinese public company Meitu Inc. announced on Sunday:
The group acquired 15,000 units of ether and 379.1214267 units of bitcoin (BTC), both cryptocurrencies, in open market transactions for an aggregate value of approximately US $ 22.1 million and US $ 17.9 million, respectively, in 5 March 2021.
Founded in 2008, Meitu is one of China’s leading internet companies that uses AI-based image and video processing technologies to edit user-generated mobile content.
According to its website, Meitu’s flagship app has accumulated more than 1 billion users worldwide. As of June 2020, there were 2.08 billion unique devices with Meitu products enabled on them, and a total of 295 million monthly active users of Meitu applications. The total number of foreign Meitu users has exceeded 823 million users, with more than 10 million users each in 15 countries, including Indonesia, Thailand, Pakistan, Vietnam, USA, Brazil, Japan, Bangladesh, Philippines, South Korea, Malaysia , Nigeria, Mexico, Canada, Turkey.
Meitu is listed on the Hong Kong stock exchange under the ticker code 1357.HK. Its shares rose up to 14.4% on Monday morning after news of its cryptocurrency purchase.
The currencies purchased “will stay with renowned cryptocurrency trading platforms contracted by the group with good security measures in place,” explained the company.
The announcement further details that “These purchases were made according to a cryptocurrency investment plan previously approved by the company’s board of directors”. Under the plan:
The group can make a net purchase of up to $ 100 million in cryptocurrencies, financed by its existing cash reserves, except for any remaining revenues from the company’s initial public offering.
Meitu is the last company to claim that it will keep cryptocurrencies as part of its treasury reserves. Last month, Tesla Inc. of Elon Musk revealed that it bought $ 1.5 billion in bitcoins and will soon accept cryptocurrency as a means of payment for its products. Meanwhile, Nasdaq-listed Microstrategy has accumulated almost 100,000 bitcoins.
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