Meitu Group turned a profit in the first half of the year, thanks to the rise in cryptocurrency.

In 2021, the well-known photo editing app Meitu Group purchased Ethereum (ETH) and Bitcoin (BTC) for the third time during the cryptocurrency bull market, with a total investment of approximately $100 million. With prices finally showing signs of recovery, Meitu announced that its net profit for the first half of 2023 is estimated to be around 2.2 to 2.65 billion RMB, with the increase and subsequent correction in cryptocurrency prices accounting for 185 million RMB.

Meitu's $100 Million Cryptocurrency Investment Plan

According to previous reports, Meitu completed a $100 million cryptocurrency investment plan in April 2021, holding a total of 941 bitcoins and 31,000 ethers. The average costs are $52,611 and $1,632 respectively.

Despite the cryptocurrency market crash last year, Meitu recognized impairment losses of $12.59 million and $28.82 million at the end of last year, but they did not sell any cryptocurrency as a result.

Meitu Turns Profit in the First Half of the Year

According to Meitu's latest announcement, its net profit in the first half of the year is approximately RMB 220 to 265 million. The main reason for the turnaround is attributed to the rise in cryptocurrency prices, which allowed for a reversal of around RMB 185 million in impairment losses compared to the end of last year. Based on this data, excluding the impact of cryptocurrencies, Meitu's net profit in the first half of the year is around RMB 3.5 to 8 million.

Based on today's prices of $30,300 for Bitcoin and $1,930 for Ethereum, Bitcoin is still at a loss of $20.99 million, while Ethereum has made a profit of $9.24 million.