Meitu, a technology company based in Fujian, China, reported today that it has purchased $40 million in cryptocurrencies, including $22 million in Ether (ETH) and $17.9 million in Bitcoin (BTC).
Meitu, a mobile maker and selfie app software company with a market cap of $11.76 billion that has been listed on the Hong Kong Stock Exchange since 2016, has announced the purchase of 380 BTC and 15,000 ETH.
The 8-year-old company said in a statement that its board believes blockchain has the potential to do for finance and technology what cell phones did for the PC internet and other offline industries. The Board claims that the blockchain industry is still in its infancy, similar to the mobile Internet industry in 2005.
The company also stated that it invested in Bitcoin and Ethereum, the two most valuable cryptocurrencies in terms of market capitalization, since “cryptocurrency prices, in general, are still extremely volatile” and that these two cryptocurrencies would “enhance shareholder value in the long-term.”
If Meitu decides to blockchain-ify its software, ETH is a successful investment, according to Meitu. It could process transactions with ETH if it wanted to do so on Ethereum.
“Purchasing Ether is therefore a reasonable preparation for both measures, as the Ether purchased would act as a gas reserve for the Group’s possible dAPP(s) to consume in the future, as well as a consideration for investing in blockchain-based projects that accept Ether,” it said.
Meitu’s Bitcoin investment is part of the company’s asset allocation strategy, which is fueled by “growing momentum in the consensus-building phase,” according to the company. Seeing insurance firms and fund managers invest in blockchain, as well as how businesses have integrated it into their treasury or accepted crypto as a means of payment, has given it FOMO.
Meitu believes the time is right because conventional banks now provide trading and custody services, and exchanges are regulated. Both actions, according to the study, increase investor interest in cryptocurrencies.
When the stock market opens tomorrow, it will be clear if Meitu’s crypto spending spree has increased investor interest.
At the time of publishing, 8th March 2021 10.15 AM, the price of Bitcoin is $50,008.11 and the price of Ethereum is $1,695.33.