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Meitu, one of China’s largest Internet application manufacturers, bought more bitcoins for its treasury. The company currently holds approximately $90 million in cryptocurrency. Meitu is listed on the Hong Kong Stock Exchange, and its flagship app has more than 1 billion users worldwide.
Meitu announced on Wednesday that its wholly-owned subsidiary Miracle Vision has acquired more Bitcoin and Ether in open market transactions. This is the company’s second procurement announcement. Meitu is listed on the Hong Kong Stock Exchange under the stock code 1357.HK.
The announcement detailed the news that the company purchased 386.08581655 BTC at a “total consideration of approximately 21.6 million US dollars” and 16,000 Ethereum at a “total consideration of approximately 28.4 million US dollars”, and added:
The group has accumulated a net purchase of cryptocurrencies worth approximately US$90 million.
The company confirmed: “After the respective purchase orders were issued and completed on March 17, 2021, the settlement of the cryptocurrency acquisition was immediately carried out.”
The Chinese company purchased 379.1214267 BTC for the first time in cryptocurrency at a price of approximately US$17.9 million, and purchased 15,000 ETH at a price of approximately US$22.1 million.
Founded in 2008, Meitu is one of China’s top Internet companies, using AI-driven image and video processing technology to edit user-generated mobile content. According to its website, the company’s flagship app has accumulated more than 1 billion users worldwide. As of June 2020, 2.08 billion unique devices have activated Meitu products on them, and there are 295 million active users of Meitu apps every month. The total number of overseas users of Meitu has exceeded 823 million.
The announcement stated: “The funds for the acquisition of cryptocurrencies come from the existing cash reserves of the group, not any residual income from the company’s initial public offering.”
The board of directors believes that cryptocurrencies have ample room for appreciation, and allocating part of its treasury to cryptocurrencies can also be used as a diversification of holding cash (due to the large increase in currency supply by central banks around the world, the pressure of devaluation).
Do you think Meitu will continue to buy Bitcoin? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Meitu Inc.
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