Chinese firm Meitu buys $50M worth of Ethereum and Bitcoin, adding $90M in net purchases 🚨 This article is 3 years old...
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Chinese firm Meitu buys $50M worth of Ethereum and Bitcoin, adding $90M in net purchases
According to the board, they are seeing a large adoption across China and countries from Southeast Asia. Companies considered "conservative" are now exploring cryptocurrencies and blockchain technology.
2 min read
Updated: Mar. 17, 2021 at 11:34 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Chinese firm Meitu recently announced another crypto-investment, buying an additional 16,000 ETH (around $28.4 million) and 386 Bitcoins ($21.6 million approximately). The firm has accrued a net purchase of $90 million worth of crypto shortly after buying ETH and BTC on March 5.
A $100 million goal
The company made the additional purchase through Miracle Vision, a subsidiary of Meitu, align with their Cryptocurrency Investment Plan. The main goal is reaching a net purchase value of at least $100 million worth of crypto, using their cash reserves, so the company could soon add another $10 million.
On March 5, the company bought 15,000 ETH ($22.1 million) and 379 BTC ($17.9 million). Meitu now holds $50.4 million in ether and $39.5 million in bitcoin. The move follows the firms’ previous statement about cash devaluation.
“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.”
The company considers that digital assets hold more value than declining fiat, turning them into better stores of value.
We can also link this investment to increasing money expansion in the U.S. The U.S. has passed a bill to allocate 1.9 trillion in a COVID-19 relief package —in an attempt to “heal” the American economy with stimulus checks of $1.400.
Of course, this means the Federal Reserve will have to print 1.9 trillion U.S. Dollars. But a recent survey found that at least 2 to 5 Americans will use the stimulus check to invest in Bitcoin.
The institutional growth of cryptocurrencies
Moreover, the company also outlined the growth in cryptocurrency adoption by financial institutions worldwide —as industry giants like Tesla, Grayscale, and MicroStrategy have recently made large purchases of crypto-assets.
According to the board, more companies across China and countries from Southeast Asia are adopting crypto. Even companies considered “conservative” are now exploring cryptocurrencies and blockchain technology, such as:
- Insurances making crypto-investments
- Traditional investment funds following Grayscale by launching crypto-funds
- Listed companies adding cryptocurrencies to their treasury management as well as even considering accepting crypto-payments
- Banks providing crypto-trading and custody service
- Regulators and policymakers offering licenses to crypto exchanges
The company warned its investors about the inherent volatility of the crypto market. Likewise, the firm could make another purchase —or sell their funds, depending on the market.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
