Meitu Inc., one of China’s largest Internet application manufacturers, is adding up to 100 million U.S. dollars worth of cryptocurrency to its treasury and is joining an increasing number of global companies. The company has purchased $40 million worth of Bitcoin and Ethereum as a balance sheet.

Chinese listed companies add Bitcoin and Ethereum to treasury reserves

Chinese listed company Meitu announced on Sunday:

The group purchased 15,000 units of Ether and 379.1214267 units of Bitcoin (BTC) in open market transactions on March 5, 2021. The total consideration of these two cryptocurrencies is approximately US$22.1 million and US$17.9 million, respectively. .

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, Meitu’s flagship app has accumulated more than 1 billion users worldwide. As of June 2020, there are 2.08 billion unique devices that have activated Meitu products, and there are 295 million active users who are active in the Meitu app every month. The total number of overseas users of Meitu has exceeded 823 million. Among them, there are more than 10 million users in 15 countries/regions including Indonesia, Thailand, Pakistan, Vietnam, the United States, Brazil, Japan, Bangladesh, the Philippines, South Korea, Malaysia, Nigeria, and Mexico. Canada, Turkey.

Meitu is listed on the Hong Kong Stock Exchange under the stock code 1357.HK. After the announcement of the purchase of cryptocurrency, its stock price rose by 14.4% on Monday morning.

The company explained that the purchased coins “will reside on the well-known cryptocurrency trading platform employed by the group and have established good security measures.”

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The announcement further elaborated that “These purchases were made in accordance with the company’s previously approved cryptocurrency investment plan.” According to the plan:

The group may use its existing cash reserves (except for any residual proceeds from the company’s initial public offering) to provide funding for a net purchase of cryptocurrencies worth up to 100 million U.S. dollars.

Meitu is the latest company to say that it will hold cryptocurrencies as part of its treasury reserves. Last month, Elon Musk’s Tesla Inc. revealed that it had purchased $1.5 billion worth of Bitcoin and will soon accept the cryptocurrency as a payment method for its products. At the same time, micro-strategy companies listed on NASDAQ have accumulated nearly 100,000 bitcoins.

Do you think that more Chinese companies will add Bitcoin to their balance sheets? Let us know in the comments section below.

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