One of China’s largest internet app makers, Meitu Inc. has bought more bitcoins for its cash registers. The company currently has about $90 million in cryptocurrencies. Meitu is listed on the Hong Kong stock exchange and its flagship app has over a billion users worldwide.
Chinese listed company increases number of bitcoin holders in treasury
Meitu Inc. announced Wednesday that its wholly owned subsidiary Miracle Vision has acquired more bitcoins and ether in open market transactions. This is the company’s second acquisition announcement. Meitu is listed on the Hong Kong Stock Exchange under the stock code 1357.HK.
The company acquired an additional 386.08581655 BTC for a total of about $21.6 million and 16,000 ETH for a total of about $28.4 million, the company said in a statement :
The group’s net purchase of cryptocurrencies was about $90 million.
Settlement of cryptocurrency purchases took place immediately following the relevant purchase orders and was executed on the 17th. March 2021, the company confirmed.
The first purchase of crypto currency by the Chinese company involved 379.1214267 BTC worth about $17.9 million and 15,000 ETH worth about $22.1 million.
Founded in 2008, Meitu is one of China’s leading internet companies that uses AI-based image and video processing technology to process user-generated mobile content. According to the website, the company’s flagship application has more than 1 billion users worldwide. By June 2020, there were 2.08 billion unique devices with Meitu products enabled and a total of 295 million monthly active users of the Meitu app. The total number of Meitu users abroad has surpassed 823 million.
The purchase of the cryptocurrencies was funded from the group’s existing cash reserves, excluding any remaining proceeds from the company’s IPO, the statement noted :
The Board believes that cryptocurrencies have broad appreciation potential and that allocating a portion of its cash to cryptocurrencies may also serve as a diversification to preserve cash (which is under pressure from depreciation due to aggressive monetary expansions by central banks around the world) in cash management.
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