26.02.2024

Chinese tech giant Meitu invested $ 40 million in Bitcoin and Ethereum

Chinese tech giant Meitu Corporation, whose shares are listed on the Hong Kong Stock Exchange, announced that it has acquired 379.1 bitcoins for a total of $ 17.9 million and 15 thousand Ethereum for $ 22.1 million.

The deal was completed on March 5 in the open market.

These transactions were carried out as part of a corporate strategy for investing in cryptocurrencies. This strategy was adopted by the Meitu Board of Directors and according to it the corporation plans to buy digital assets for another $ 60 million . The financial sources of such transactions are determined by the cash reserves shown on the balance sheet of the organization, as well as proceeds from the sale of Meitu securities during the IPO.

It is noteworthy that Meitu invested more funds in Ethereum than in Bitcoin. If you look at the market dynamics over the past two weeks, you can see that Ethereum was at a local minimum on March 5, judging by the ETH / BTC pair, but not at the very “bottom”.

In any case, the Meitu purchase demonstrates that the company has joined those investors in the market who see great potential for Ethereum price growth thanks to the rise in popularity of DeFi (decentralized finance). Meitu does not rule out the possibility of using Ether eum to carry out its operations in DeFi, and may also use such digital assets when possibly considering its entry into infrastructure projects of decentralized finance.

Meitu also spoke out about her investment in cryptocurrency # 1, explaining that she views bitcoins as an alternative financial option for storing value, while the price of bitcoin is largely a function of future demand for this asset.

The company also said that the leadership of the organization views distributed ledger technology as an innovation that will greatly transform the financial and IT sector, and compares the blockchain with the changes caused by the emergence of the mobile Internet . At the same time, the Board of Directors believes that the blockchain sector is now at the very beginning of its development – exactly as in 2005 the mobile Internet just began to gain popularity.

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