Hong Kong-based technology company Meitu has increased the total value of its cryptocurrency assets to around $100 million, after the company announced on 8. April announced the purchase of another $10 million in bitcoins (BTC).
Meitu HK, a wholly owned subsidiary of Hong Kong-based Meitu Inc (in the Cayman Islands), purchased 175.67798279 units of bitcoins for a total price of $10 million, which equates to a purchase price of about $57,000 per coin. The purchase was allegedly made using available cash reserves calculated on the basis of spot prices in the open market.
Meitu acquired $90 million worth of cryptocurrencies last month, split between bitcoin and Ether (ETH). The company acquired BTC for $49.5 million and Ethereum for $50.5 million after its latest acquisition on Thursday.
The company has previously stated that it would not have been able to make its previous purchases without the help of US cryptocurrency company Coinbase. Coinbase was not mentioned in the recent announcement, but the exchange has been responsible for managing the investments of other companies like MicroStrategy in the past.
The announcement highlighted the company’s reasons for adding bitcoin to its holdings, and compared the potential impact of the technology to that of the mobile internet:
The Council believes that blockchain technology has the potential to disrupt both the existing financial and technology sectors, just as the mobile internet disrupts the computer internet and many other offline industries.
The announcement highlights bitcoin’s utility as a store of value, a function supported by its limited supply. Mobility and hedging against inflation as a result of aggressive pressure practices by central banks were also mentioned.
Some of these features may even make bitcoin a superior form of storage to other alternative storage methods such as gold, gems, and real estate. As an alternative store of value, its price depends primarily on future demand, which is determined by consensus among investors and the public, the disclosure statement said.
China-listed companies when investing in cryptocurrencies. China recognizes cryptocurrencies as a commodity, but not as a usable currency. Their exchange with money is prohibited, but because of their status as a commodity, some have suggested that cryptocurrencies can still be traded with each other and with other commodities, which remains an unclear situation in the Far East.
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