One of China’s leading internet app manufacturers, Meitu Inc., is expanding its treasury to include cryptocurrencies worth up to $ 100 million, joining a growing list of companies around the world. The company has already bought $ 40 million worth of Bitcoin and Ether on its balance sheet.
Chinese corporation expands treasury reserves to include Bitcoin and Ethereum
The Chinese public company Meitu Inc. announced on Sunday:
On March 5, 2021, the group purchased 15,000 units of Ether and 379.1214267 units of Bitcoin (BTC), both cryptocurrencies, in open market transactions for a total of approximately USD 22.1 million and USD 17.9 million, respectively.
Founded in 2008, Meitu is one of the leading internet companies in China using AI-driven image and video processing technologies to manipulate user-generated mobile content.
According to its website, Meitu’s flagship app has amassed more than 1 billion users worldwide. As of June 2020, there are 2.08 billion unique devices with Meitu’s products activated and a total of 295 million monthly active users of Meitu’s apps. Meitu’s total overseas users has exceeded 823 million users, with over 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 stock code 1357.HK. Shares rose as much as 14.4% on Monday morning after news of the cryptocurrency purchase.
The purchased coins “are on well-known trading platforms for cryptocurrencies that have been commissioned by the group with good security measures,” said the company.
The announcement further explains that “these purchases were made under a cryptocurrency investment plan previously approved by the Board of Directors”. Under the plan:
The group can make a net purchase of up to $ 100 million worth of cryptocurrencies that will be funded from existing cash reserves, excluding the remaining proceeds from the company’s IPO.
Meitu is the youngest company to hold cryptocurrencies as part of its treasury reserves. Last month, Elon Musk’s Tesla Inc. announced that it had purchased $ 1.5 billion worth of Bitcoin and will soon be accepting the cryptocurrency as payment for its products. The Microstrategy, listed on the Nasdaq, has now accumulated almost 100,000 Bitcoins.
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