By
Temitope Olatunji
April 24th, 2024
Explaining their reason for adding more Bitcoin to its holdings, Meitu revealed that their decision was influenced by the utility of Bitcoin and the ability of blockchain technology to take over from the financial and the technology industry.
Meitu HK, a subsidiary of Chinese app maker Meitu Inc (HKG: 1357), has joined the tall list of companies acquiring cryptocurrencies for investment purposes. According to the recent report, Meitu has purchased a Bitcoin of 175.67798279 worth around $10 million. This means their Bitcoin and Ethereum holdings have risen to $100 million.
The Bitcoin price is currently hovering around the $57,000 price zone with Ethereum trading above $2000 thanks to the institutional and the retail interest in the digital asset. The report reveals that the Bitcoin purchase was made based on the spot price of the open market using their cash reserves.
The company did not disclose the exchange on which this purchase was made. However, it can be recalled that their previous purchase was made through Coinbase Inc which currently has a record of managing the assets of many institutions.
As of last month, Meitu had accumulated a total of $90 million worth of Bitcoin and Ethereum. It is interesting to note that the company has more Ethereum ($50.5 million) than Bitcoin ($49.5 million). Bitcoin and Ethereum are the largest cryptocurrencies by market cap and have got a lot of trust from leading institutions who have the majority of these two assets in their portfolio.
Explaining their reason for adding more Bitcoin to its holdings, Meitu revealed that their decision was influenced by the utility of Bitcoin and the ability of blockchain technology to take over from the financial and the technology industry in the same way PC internet has been disrupted by mobile internet. Bitcoin has been tipped to be the future of internet money with its monetary features.
The scarcity of its supply makes it a perfect store of value. Also, Bitcoin provides a very good hedge against inflation amid the massive money printing by the central bank coupled with its portability. This real utility makes it a good buy, explaining why Meitu added more of it to its existing holding. It is worth noting that Bitcoin has several alternatives which include real estate, gold, and precious metals. However, the features of Bitcoin put it in potential superiority ahead of these alternatives.
The CEO of Meitu Cai Wensheng has been a long-term fan of Blockchain technology and Bitcoin which is evident in the company’s purchases. China has a hostile environment for Initial Coin Offering and Cryptocurrency Exchanges. However, Cai managed to personally obtain about 10,000 Bitcoin in 2018.
He explained the company’s purchase of Bitcoin as part of their asset allocation plan and also, their Ethereum purchase as a manifestation of their interest in blockchain as they seek to also invest in foreign blockchain projects. Meitu sees cryptocurrency as an excellent investment avenue for growth as they turn 13-years-old.