One of China’s top internet app manufacturers, Meitu Inc., is adding up to $ 100 million worth of cryptocurrencies to its treasury, joining a growing list of companies worldwide to do so. The company has already bought $ 40 million worth of bitcoin and ether for its balance sheet.
Chinese public company adds Bitcoin and Ethereum to treasury reserves
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, at a total price of US $ 22.1 million and US $ 17.9 million, respectively.
Founded in 2008, Meitu is one of China’s leading Internet companies using AI-driven image and video processing technologies to edit user-generated mobile content.
According to its website, Meitu’s flagship app has built up more than 1 billion users worldwide. As of June 2020, there are 2.08 billion unique devices on which Meitu’s products have been activated, and a total of 295 million monthly active users of Meitu programs. Meitu’s total overseas users exceeded 823 million users, with more than 10 million users in 15 countries, including Indonesia, Thailand, Pakistan, Vietnam, USA, Brazil, Japan, Bangladesh, the Philippines, South Korea, Malaysia, Nigeria , Mexico. , Canada, Turkey.
Meitu is listed on the Hong Kong Stock Exchange under the stock code 1357.HK. Its shares rose 14.4% on Monday morning following news of the purchase of cryptocurrencies.
The purchased coins “will be located on well-known cryptocurrency trading platform (s) involved by the group with sound security measures in place,” the company explained.
The announcement further describes that ‘these purchases were made on the basis of a cryptocurrency investment plan previously approved by the board’ of the company. Under the plan:
The group can make a net purchase of up to $ 100 million worth of cryptocurrencies, financed by its existing cash reserves in addition to any remaining proceeds from the company’s initial public offering.
Meitu is the latest company to say it will own cryptocurrencies as part of its treasury reserves. Last month, Elon Musk’s Tesla Inc. reveals that he bought $ 1.5 billion worth of bitcoin and will soon accept the cryptocurrency as payment for his products. Meanwhile, the Nasdaq-listed Microstrategy has accumulated nearly 100,000 bitcoins.
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