Chinese tech company Meitu has announced the investment of a further $50 million into Ether and Bitcoin, taking its net spend on crypto up to roughly $90 million this month.
The Hong Kong and China listed company purchased 386.08 BTC for $21.6 million, and 16,000 ETH for around $28.4 million, on March 17. The most recent announcement follows an initial cryptocurrency investment on March 5, in which the company acquired 15,000 ETH for around $22.1 million and roughly 379 BTC for approximately $17.9 million.
In the latest announcement, the company noted that while cryptocurrency is still in its formative stages, it believes that blockchain technology has the potential to be a disruptive force in existing financial and technology industries:
“The Board believes that the blockchain industry is still in its early stage, analogous to the mobile internet industry in circa 2005. Against this backdrop, the Board believes cryptocurrencies have ample room for appreciation in value.”
The company also cited the growing trend of large institutions such as Tesla and Microstrategy accumulating Bitcoin, and the increasing acceptance for cryptocurrency as a form of payment for goods and services in mainstream society, as reasons for the additional purchase.
Meitu went public in 2016 and is listed in China and Hong Kong. The tech company developed MeituPic, an app that lets users edit and retouch photos that is popular in mainland China, Hong Kong and Taiwan.
BREAKING – Hong Kong Listed Company Meitu Inc has purchased another 16,000 ETH at $28.4million and 386 BTC at $21.6million.
The group now has $90mil worth of cryptocurrencies.https://t.co/P367TtPuiO pic.twitter.com/sYPSWPjOpJ
— frxresearch (@frxresearch) March 17, 2021
Following the announcement of its first investment on March 5, Chinese journalist Wu BlockChain suggested it was: “The first Chinese listed company to buy a large amount of Bitcoin.”.
However, it seems unlikely many more publicly listed Chinese companies will announce large crypto purchases in the near future, as the regulatory environment in the country is highly uncertain. China currently accepts Bitcoin as a virtual commodity, but prohibits trading platforms from engaging in exchanging legal tender for virtual currencies or tokens.