Meitu App, a Chinese photo app, has purchased $22 million in Ethererum (ETH) and $17.9 million of Bitcoin (BTC) on March 5. Shares of the beauty-focused tech firm rose by as much as 14.4% on Monday morning after the company bought $40 million of cryptocurrencies. Tesla, Square, and MicroStrategy have made similar forays into cryptocurrencies in recent months. Meitu Purchases 379.1 Bitcoin and 15,000 Ethereum Meitu bought 15,000 Ethereum and 379.1 Bitcoin in open market transactions on March 5, a move that its Co-founder boasted as unprecedented for a Hong Kong-listed company. Mike Cai Wensheng, Meitu’s co-founder and chairman, wrote on Chinese social media platform WeChat that his company is the first Hong Kong-listed firm to hold bitcoin and the world’s first listed company to hold ether in its treasury. The purchases were made under the terms of a cryptocurrency investment plan previously approved by the company’s board of directors which allows the company to purchase up to $100 million of cryptocurrency. The investment was made by cash reserves other than any remaining proceeds from Meitu’s 2016 IPO. The company policy read: “Subsequent purchases or sales of cryptocurrencies pursuant to the cryptocurrency investment plan will be executed at the board’s discretion according to market conditions.” Meitu Preparing its Foray Into the Blockchain Industry On investing in bitcoin, Meitu calls it a potentially “superior form to other alternative stores of value such as gold, precious stone and real estate”. Meitu has said that it’s evaluating the feasibility of integrating blockchain tech into its overseas business, including launching Ethereum-based decentralized applications, saying: “More importantly, the Board considers this a demonstration to investors and stakeholders that the Group has the vision and determination to embrace technological evolution, and hence preparing its foray into the blockchain industry.” Meitu even endorses that buying cryptocurrencies helps in diversify its holdings away from cash. The photo editing app is also evaluating potential investments in blockchain-based projects, many of which will accept Ethereum as consideration for investment.
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