Meitu announced that it has purchased 380 Bitcoin and 15,000 Ethereum.
Crypto investments from Meitu
Meitu is a technology company headquartered in China’s Fujian province. It announced yesterday that it has purchased $40 million worth of cryptocurrencies. Of that, it puts $22 million in Ethereum and $17.9 million in Bitcoin.
Meitu is a smartphone manufacturer and selfie app software company listed on the Hong Kong Stock Exchange since 2016. The company has a market cap of $11.76 billion and recently announced that it has purchased 380 Bitcoin and 15,000 Ethereum.
In a statement, the 8-year-old company said the board believes the blockchain could do for finance and technology, what cell phones did for the internet and other offline industries.
The Board believes that the blockchain industry is still in its early stages, compared to the mobile internet industry around 2005.
The company added that it only invested in the Bitcoin and Ethereum as they are the two largest cryptocurrencies by market capitalization, and these two cryptocurrencies would increase long-term shareholder value of company.
Meitu’s Bitcoin investment is part of its asset diversification strategy. The company has gained interest by looking at insurance companies and fund managers investing in blockchain, and by observing how companies have added it to their reserves or by accepting crypto as a form of payment.
Meitu said it felt the time was right to invest. This is because traditional banks now provide trading and custody services and regulators have better regulated the market. Both steps increase investor confidence in cryptocurrencies.