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One of China’s leading internet application makers, Meitu Inc., adds up to $ 100 million worth of cryptocurrency to its treasury, joining a growing list of companies around the world to do so. The company has already bought $ 40 million worth of bitcoin and ether for its balance sheet.
Chinese state-owned company adds Bitcoin and Ethereum to treasury reserves
Chinese state-owned Meitu Inc. announced on Sunday:
The group bought 15,000 units of ether and 379.1214267 units of bitcoin (BTC), two cryptocurrencies, in open market transactions for a total consideration of approximately $ 22.1 million and $ 17.9 million. million USD respectively, on March 5, 2021.
Founded in 2008, Meitu is one of the leading Chinese internet companies using AI-based image and video processing technologies to edit user-generated mobile content.
According to its website, Meitu’s flagship app has amassed over a billion users worldwide. As of June 2020, there were 2.08 billion unique devices that Meitu products were activated on, and a total of 295 million monthly active users of Meitu apps. The total number of foreign users of Meitu has exceeded 823 million users, with more than 10 million users each in 15 countries, including Indonesia, Thailand, Pakistan, Vietnam, United States, Brazil, Japan, Bangladesh, the Philippines, South Korea, Malaysia, Nigeria and Mexico. , Canada, Turkey.
Meitu is listed on the Hong Kong Stock Exchange under the stock code 1357.HK. Its shares rose 14.4% on Monday morning after the announcement of its cryptocurrency purchase.
Coins purchased “will reside on reputable cryptocurrency trading platforms engaged by the group with good security measures in place,” the company explained.
The announcement further states that “these purchases were made in accordance with a cryptocurrency investment plan previously approved by the board of directors” of the company. As part of the plan:
The group may make a net purchase of up to US $ 100 million of cryptocurrency, funded from its existing cash reserves other than the remaining proceeds from the company’s initial public offering.
Meitu is the latest company to say it will hold cryptocurrencies as part of its cash reserves. Last month, Elon Musk’s Tesla Inc. revealed that it bought $ 1.5 billion worth of bitcoin and will soon accept cryptocurrency as a payment method for its products. Meanwhile, the Nasdaq-listed Microstrategy has accumulated nearly 100,000 bitcoins.
Do you think more Chinese companies will add bitcoin to their balance sheets? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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