Meitu doubles down! Invests $50 million to purchase Bitcoin and Ethereum, ranking among the top ten public companies in terms of holdings.

On the 5th of this month, the Meitu Group spent $40 million to buy Bitcoin and Ethereum. Yesterday, on 3/17, they announced an additional investment of $50 million, causing their stock price to rise slightly by 2.5%.

According to previous reports, Meitu claimed that the reasons for buying these two assets are different. Bitcoin is for asset allocation purposes, while Ethereum is for their foray into the blockchain industry, as it is needed for deploying contracts and as fuel fees.

Why Buy Bitcoin?

According to a statement by Meitu, its board of directors recognizes that traditional financial institutions have begun to invest in or launch related funds; many public companies have also included a portion of cryptocurrency in their cash reserves and are even considering accepting payments; this also includes banks providing trading, custody, and regulatory agencies gradually opening up.

Meitu describes Bitcoin as follows:

Bitcoin has various functions that make it a good alternative for value storage, including limited supply, exchangeability for fiat currency or goods and services, portability, and the potential to serve as a hedge against devaluing fiat currencies, possibly even surpassing other value storage tools such as gold, jewelry, and real estate. Its value primarily depends on the demand from investors and the public consensus.

Why Buy Ethereum?

Meitu claims to be evaluating the feasibility of integrating blockchain technology into various international businesses, including but not limited to Ethereum DApps, searching for blockchain project investment targets, etc. Buying Ethereum aligns with the aforementioned plans, as Ethereum can serve as a fuel reserve if Meitu launches DApps, and Ethereum can be directly used as investment funds for blockchain projects.

Its description of Ethereum is as follows:

Ethereum is an open-source, blockchain-based decentralized platform. Ethereum has the largest number of DApps, spanning across various sectors such as finance, gaming, social media, art, and collectibles, adopting the Ethereum protocol.

Ranked Top Ten in Holdings among Listed Companies

As reported earlier, on March 5, Meitu bought:

• Bitcoin: 379.12 coins, $17.9 million
• Ethereum: 15,000 coins, $22.1 million

On March 17, it bought:

• Bitcoin: 386.08 coins, $21.6 million
• Ethereum: 16,000 coins, $28.5 million

Meitu is the first Asian listed company to hold Ethereum, and with this additional purchase, its Bitcoin holdings have risen from 12th to the tenth position.

Unlike the previous opening surge of 13%, which fell back at the close, Meitu's stock price rose slightly by 2.5%, marking a nearly doubled growth of 97.2% since the beginning of the year.