Chinese App Meitu Betting on Cryptocurrencies
- Hugely popular Chinese photo-editing app that is popular with vloggers and social media influencers has bought Bitcoin and Ether
- Hong Kong-listed firm looks to be expanding to writing decentralized apps or dApps on the Ethereum blockchain
How do those Chinese vloggers and social media stars always appear to have dewy soft flawless skin? It’s Meitu (+11.81%).
Because whatever mother nature didn’t provide, technology certainly can.
Meitu is a Chinese company that makes an addictive photo editing app that touches up photos before they’re posted with a simple stroke of the finger.
And it appears that Meitu is now touching up its balance sheet as well, buying Bitcoin and Ether, and becoming the latest high-profile firm to buy into cryptocurrencies.
Listed in Hong Kong, Meitu announced on Sunday that it bought some US$22.1 million worth of Ether and US$17.9 million worth of Bitcoin last week.
Meitu’s bet on cryptocurrencies is a lot less than the likes of Tesla (-5.84%), Square (-6.73%) and MicroStrategy (+0.64%) but is no less significant considering that it’s a Chinese company, especially at a time when Beijing is betting on its own digital currency and appears to be less accommodating to cryptocurrencies.
Importantly, Meitu didn’t just bulk up on Bitcoin either, but took a bigger position on Ether, the world’s second largest cryptocurrency by market cap and its blockchain Ethereum, which continues to serve as the base for a plethora of decentralized applications called dApps.
In a statement, Meitu said,
“Blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries.”
“The Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.”
The announcement sent shares of Meitu immediately higher on Monday, popping by over 14%.
And while Meitu noted that cryptocurrency prices are “still highly volatile” the company said that it’s “evaluating the feasibility of integrating blockchain technologies to its overseas businesses.”
Which may help to explain why the photo-editing application took a larger stake in Ether, because it is considering launching Ethereum-based apps or investing in other blockchain businesses.
Cryptocurrencies are gaining wider institutional acceptance and Meitu is just the latest firm in a growing list of companies which are either getting exposure to cryptocurrencies or are considering the same.
Bitcoin and Ether are both higher today.