Following Tesla, Meitu, a Chinese company, joined the cryptocurrency club.
In early 2010, Meitu became the leader of the photo beautifying apps, in China. However, in recent years, mobile phones became the leading gadgets with their built-in filters, the photo editors like Meitu are struggling to keep the dominance of these kind of apps. The stocks of Meitu became shorter by HK$15, from HK$18 / unit in 2017 to only HK$3 today.
Since the Company is turning 13 years old, and aims to keep growing and eventually leading the Market, is blinking eyes to cryptocurrency.
On March 5th, Meitu bought 15,000 Ether worth $22.1 Million and around 379 Bitcoins worth 17.9 Million in open market transactions, the company stated last Sunday, 7th March.
Recently, Meitu’s chairman, Cai Washeng, has been a strong supporter of blockchain technologies.
Although China has banned Initial Coin Offerings and crypto trading exchanges, Cai said in 2018 that he personally bought around 10,000 bitcoins.
In Company latest investment move, his support to Cryptocurrencies is clearly manifested. In that announcement the Company states:
“The Board takes the view that 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. The Board believes that the blockchain industry is still in its early stage, analogous to the mobile internet industry in circa 2005.”
And it continues saying:
“Against this backdrop, the Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash treasury management.”
The Bitcoin investment is part of its “asset allocation” plan while its bet on Ether will aid its general blockchain endeavor, wherein it’s considering baking blockchain into its various overseas businesses, including Ethereum-based dApps. It’s also looking to invest in overseas blockchain projects “that can be synergistic to its large user base”, Meitu explained.
As of June 2020, Meitu claimed nearly 300 million monthly active users on its suite of apps released across the globe.