Chinese app Meitu buys millions worth of bitcoins and ethereum


The Meitu application interface is displayed on a mobile phone in Yichang, central China’s Hubei Province, on February 22, 2021.

Costfoto | Barcroft Media | fake images

Meitu, a Chinese company that makes a photo editing app, has bought bitcoin and ether, becoming the latest company to buy cryptocurrencies.

The Hong Kong-listed company said on Sunday that it bought $ 22.1 million in ether and $ 17.9 million in bitcoin on March 5.

Meitu follows companies like Tesla and Square in buying bitcoins. But the Chinese app maker appears to be the first major company to buy Ether, a cryptocurrency that runs on the Ethereum blockchain.

Bitcoin is built on its own blockchain, the technology that underpins it.

Ethereum is a completely different network. It is an open source blockchain that allows developers to build applications on top of it. The ether cryptocurrency can be used to pay or interact with services built on the ethereum network. These are often called decentralized applications or dApps.

Meitu said in a statement that “blockchain technology has the potential to disrupt existing financial and technology industries, similar to the way the mobile internet has disrupted the PC internet and many other offline industries.”

“The Board believes that cryptocurrencies have a wide scope for appreciation in value and by allocating part of its treasury in cryptocurrencies it can also serve as a diversification to hold cash (which is subject to depreciation pressure due to aggressive increases in the money supply of central banks globally) in treasury management, “Meitu said.

The move demonstrates to investors that Meitu “has the vision and determination to embrace technological evolution and thereby prepare its foray into the blockchain industry,” Meitu said.

Meitu shares were up 3.3% as of 1:44 p.m. Hong Kong time, after surpassing 14% earlier that day.

Meitu noted that cryptocurrency prices are “still very volatile.”

The company said it is “evaluating the feasibility of integrating blockchain technologies into its various overseas businesses,” including the potential launch of ethereum-based applications or investment in other blockchain businesses.

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