Meitu, a Chinese language photograph retouching app listed in Hong Kong, has introduced it bought $40 million worth-of bitcoin and ethereum.
The agency mentioned in disclosure Sunday on the Hong Kong Inventory Alternate that it has purchased 15,000 units of ETH and 379.12 units of BTC in open market transactions at a median price of $22.1 million and $17.9 million, respectively, on Friday.
“These purchases have been made pursuant to a cryptocurrency funding plan beforehand accredited by the board of administrators, underneath which the Group could make a web buy of as much as US$100 million value of cryptocurrencies, financed by its present money reserves apart from any remaining proceeds from the Firm’s preliminary public providing,” Meitu mentioned within the announcement.
Based in 2008, Meitu is likely one of the hottest cell apps in China with a market capitalization of HK$11.7 billion ($1.5 billion). As of June 2020, Meitu held 2.5 billion yuan ($384 million) in money and liquid monetary reserve and had 295 million self-reported month-to-month lively customers.
Its chairman and founder Cai Wensheng can be a recognized pro-bitcoin determine who mentioned in 2018 in an interview that he personally amassed 10,000 BTC on the time.
The Sunday announcement, with a signature penned by Cai, mentioned Meitu’s board believes that blockchain expertise has the potential to disrupt the present monetary and expertise industries, just like what the cell web has performed to the PC web and plenty of different offline companies.
On this context, the agency believes that “cryptocurrencies have ample room for appreciation in worth and by allocating a part of its treasury in cryptocurrencies may function a diversification to holding money (which is topic to depreciation stress attributable to aggressive will increase in cash provide by central banks globally) in treasury administration.”
Meitu can be one of many first Chinese language publicly listed corporations which have joined the ranks of Sq., Tesla and MicroStrategy in holding bitcoin as a part of its treasury administration technique.
“[Bitcoin] has a number of options that allow it to be different retailer of worth, corresponding to being restricted in provide, its exchangeability into fiat cash or items and companies, portability, and its potential to behave as an efficient hedge towards depreciation of fiat currencies attributable to aggressive improve in cash provide by central banks globally,” Cai penned within the launch, including:
“A few of these options probably even render Bitcoin as a superior type to different different shops of worth corresponding to gold, valuable stone and actual property. Being another retailer of worth, its value is primarily a operate of future demand that’s pushed by consensus of traders and most people.”
As regard to its funding in ETH, Meitu outlined to its shareholders numerous software actions together with finance, video games, social media and artwork and collectibles which were constructed on prime of the Ethereum protocol.
“The Group is at the moment evaluating the feasibility of integrating blockchain applied sciences to its numerous abroad companies, together with however not restricted to launching Ethereum-based dApps, in addition to figuring out appropriate abroad blockchain-based tasks for potential investments,” Meitu mentioned and therefore “buying Ether is subsequently a logical preparation for each initiatives.”
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