Chinese beauty app Meitu shares rise after cryptocurrency investment

Hong Kong-listed Chinese photo & video editing app Meitu Inc.’s shares increased by 14.4% after the company announced that it invested $40 million in cryptocurrencies. 

On Monday, the company disclosed in a filing that it bought 15,000 units of Ether for $22.1 million and  379,1214267 units of Bitcoin for $17.9 million on March 5. 

Also Read: Square announces $170 million purchase in Bitcoin, now holds 5% of its total cash reserves in BTC

The investment is the first step in Meitu’s plan to buy up to $100 million worth of cryptocurrencies, financed by its existing cash reserves. 

“The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries. The Board believes that the blockchain industry is still in its early stage, analogous to the mobile internet industry in circa 2005.” said the company in the filing. 

“Against this backdrop, 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 treasury management.”

In June 2020, the company reported approximately 300 million monthly active users across its apps which include Meitu, Beauty Cam, Beauty Plus, Meipai and more. 

Written by Maya Robertson


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