Meitu purchases Bitcoin again, reaching its $100 million investment goal! Monthly cryptocurrency trading profits double its annual core business net profit.

After three rounds of public investment, the well-known photo editing app Meitu Group has successfully implemented its initial $100 million cryptocurrency investment plan. Despite ranking only twelfth in terms of Bitcoin holdings among listed companies, holding Ether on its balance sheet remains unprecedented.

How much Bitcoin does Meitu hold?

According to a statement by Meitu, the company made additional Bitcoin purchases on April 8th, with the investment timeline as follows:

Purchased on March 5th:

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

Purchased on March 17th:

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

Purchased on April 8th:

• Bitcoin: 175.67 coins, $10 million

With this, Meitu's initial $100 million investment plan has been fulfilled, holding 31,000 Ethereum worth $50.5 million and 940.8 Bitcoin worth $49.5 million, ranking twelfth in Bitcoin holdings among listed companies.

Why invest in cryptocurrencies?

As reported earlier, the company has specific reasons for investing in Bitcoin and Ethereum.

Why Bitcoin?

Bitcoin serves various functions, making it a good alternative for value storage, including limited supply, exchangeability for fiat currency or goods and services, portability, and potential as a hedge against depreciating fiat currencies, possibly outperforming other value storage tools like gold, jewelry, and real estate, with its value primarily dependent on investor and public consensus.

Why Ethereum?

Meitu claims to be evaluating the feasibility of integrating blockchain technology into various international operations, including but not limited to Ethereum DApps, identifying blockchain project investment targets, etc. Buying Ethereum aligns with these plans, as Ethereum could serve as fuel reserves if Meitu launches DApps, and it can be used directly as investment funds for blockchain projects.

Meitu's cryptocurrency gains exceed 2020 full-year net profit

At current prices, Meitu's Bitcoin is valued at $54.52 million, gaining $5.02 million; Ethereum is valued at $64.32 million, gaining $13.82 million, with current realized gains reaching approximately $18.84 million.

According to Meitu's 2020 performance report, the full-year adjusted net profit was 60.9 million RMB, equivalent to about $9.13 million, indicating that Meitu's monthly cryptocurrency investment gains are nearly double its 2020 core business income.

Although Meitu is the first Asian listed company to include cryptocurrencies on its balance sheet, its stock price has not soared like MicroStrategy's, and this news has only brought about a 6% increase in its stock value.