China’s MicroStrategy? – Meitu invests another 50 million US dollars in BTC and ETH
The Chinese major has now invested a total of US$90 million in the two crypto market leaders.
Chinese technology company Meitu has announced it has invested a further US$50 million in Ether and Bitcoin, bringing its total spending on cryptocurrencies this month to just under US$90 million.
The Hong Kong- and China-listed company accordingly bought 386.08 BTC for US$21.6 million and 16,000 ETH for US$28.4 million yesterday, 17 March. The latest purchase follows a similar investment on 5 March, when it acquired 15,000 ETH for US$22.1 million and 379 BTC for US$17.9 million.
In its current announcement, the company justifies this investment decision with the fact that cryptocurrencies are still in an early phase, which is why the timing is now favourable. In addition, the group believes that blockchain technology has almost revolutionary potential for the Bitcoin Blueprint financial sector and technology industry:
„The Board believes that the blockchain industry is still in an early stage similar to Internet for mobile devices in 2005, and against this backdrop, the Board believes that cryptocurrencies still have a lot of room for significant value creation.“
In addition, the group points out that Tesla and MicroStrategy have kicked off a trend among institutional investors that is increasingly establishing the adoption of Bitcoin in the mainstream.
Meitu went public in China and Hong Kong in 2016. Among other things, the group has developed the app MeituPic, which allows users to edit images in a similar way to Photoshop.
The app is particularly popular in China, Hong Kong and Taiwan
BREAKING – Hong Kong Listed Company Meitu Inc has purchased another 16,000 ETH at $28.4million and 386 BTC at $21.6million.
The group now has $90mil worth of cryptocurrencies.https://t.co/P367TtPuiO pic.twitter.com/sYPSWPjOpJ
– frxresearch (@frxresearch) March 17, 2021
After the initial investment on 5 March, a Chinese journalist noted that Meitu was „the first listed company from China to buy a large amount of bitcoin“.
Nevertheless, it remains unlikely that many other large Chinese corporations will also invest massively in cryptocurrencies in the near future, as the legal situation around them remains rather ambiguous in the „Middle Kingdom“. China recognises Bitcoin as a virtual commodity, but prohibits its purchase via trading platforms in exchange for fiat currencies.
Posted in Bitcoin