TL;DR Breakdown
- Meitu invests more in cryptocurrency.
- Many Chinese firms may not invest in crypto.
Dubbed the Asian MicroStrategy, Meitu, an Asian tech firm into software development, has staked a whopping $90 million in cryptocurrency. They bought 31,000 Ethereum worth $40 million and 762.21 Bitcoin worth $50 million.
The Asian tech firm is best known for its selfie-editing app. The app was massively popular in China before adding built-in filters and editors to major social media platforms. For a while now, Meitu has found it challenging to grow and improve its revenue base as it follows another firm to invest in cryptocurrency with the hope prices would rise and, in turn, generate more income for the firm.
Meitu also said that crypto is still in its formative stage and believes blockchain technology can be a disruptive force in existing financial and technology industries.
When the Asian tech firm first got into crypto
Meitu got its debut in the crypto space earlier this month when it purchased about 40 million crypto worth 15,000 Ethereum and 379 Bitcoin. They also shared details of their crypto investment plan.
The plan was to buy up to $100 million worth of cryptocurrencies using its existing cash reserves and remaining proceeds from its IPO. They have added $90 million more to their crypto stake to bring their total crypto investment to $140 million. The Asian tech firm has seen its stock price plunge in recent years, dropping from HK$18 in 2017 to HK$1.5 just earlier this year. As they approach their 13th year in business, the company is looking towards digital currencies as a new direction for the company.
Speculations are making around that China will not see sizeable institutional crypto purchases soon, as the country’s regulatory environment is highly uncertain. China currently accepts Bitcoin as a virtual commodity but prohibits trading platforms from engaging in exchanging legal tender for virtual currencies or tokens.
