Sarah Tran
Independent Analyst
- Chinese app developer firm Meitu buys another $10 million in Bitcoin to complete its Cryptocurrency Investment Plan.
- The Hong Kong-listed company has previously scooped up $90 million in BTC and ETH.
- Meitu purchased the previous $90 million in Bitcoin and Ether on Coinbase but the latest $10 million in BTC on another exchange.
The Chinese technology company recently announced that it had completed its cryptocurrency treasury allocation plan with a purchase of $10 million in Bitcoin.
Meitu believes crypto is a better store of value than fiat
Meitu, the app developer firm originally set out to invest $100 million in cryptocurrencies and has become the first Chinese company to reveal its digital asset acquisitions publicly.
The Hong Kong Stock Exchange-listed company revealed in a disclosure filing that its most recent purchase of $10 million in Bitcoin had reached the $100 million mark for its Cryptocurrency Investment Plan.
The publicly-traded firm created a Cryptocurrency Investment Plan, which outlines Bitcoin and Ether's addition to its treasury as an investment and preparation of future initiatives.
Meitu’s board members highlighted that cryptocurrencies have massive room for “appreciation in value” and that investing in digital assets would be better stores of value than fiat.
The Xiamen-headquartered company initially purchased 15,000 ETH and 379 BTC on March 5, for approximately $40 million at the time. The following week, the tech firm scooped up another $50 million worth of Bitcoin and Ether. The final $10 million of cryptocurrencies were acquired on April 8.
Currently, the Chinese firm holds a total of 31,000 ETH and 940 BTC, accomplishing its treasury allocation plan.
Although institutions like Tesla and Square have previously announced their purchases in Bitcoin, Meitu has become the first major company to buy Ether. The company said it could launch blockchain-based apps in the future. Meitu stated:
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.
Meitu positions itself with the determination to embrace technological evolution and preparing its “foray into the blockchain industry.”
Latest Bitcoin purchase facilitated through a Hong Kong exchange
The $10 million purchase in Bitcoin this round was facilitated by Hong Kong’s first compliant exchange, OSL. According to Chinese journalist Collin Wu, this marks “great significance to the development of the crypto ecosystem in Hong Kong and Greater China.”
Wu further explained that although the enthusiasm for cryptocurrencies in China is only second to the United States, Beijing has taken a negative stance against digital assets.
However, Hong Kong is gradually opening up to the world of cryptocurrencies, proven with the approval of compliant digital asset exchanges. He further suggested that the Asian city could become the world’s second-largest compliant cryptocurrency financial center, with the backing of a mature financial system that currently exists.
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