Chinese App Company Meitu Engages in Big Crypto Buy
Chinese app creator Meitu has made a $40 million crypto investment in a filing to the Hong Kong Stock Exchange.
Meitu Buys a Lot of BTC and ETH
We are now in an era where bitcoin is being heavily examined by companies and institutional investors across the board. Last August, things got started in this direction with the help of MicroStrategy, a software firm that purchased more than $250 million-worth of the world’s number one cryptocurrency asset, and things didn’t stop there.
The company continued to buy and caused many additional firms to feel confidence in BTC, something they’d been lacking all these years. Enterprises such as Tesla, Square and Stone Ridge have all purchased hundreds of millions to billions of dollars in BTC, and many other firms – some of which have nothing to do with crypto – are beginning to follow suit.
Furthermore, we are now seeing many crypto giants – such as Coinbase – begin to engage in public offerings, ensuring that the crypto space could potentially move further into mainstream territory.
Meitu is a photo-retouching company and has quite the audience in countries like China. In a recent statement, the firm announced it had bought more than 15,000 units of ether, along with nearly 380 units of BTC. The purchases were worth approximately $22.1 million and $17.9 million, respectively.
Meitu explained:
Blockchain technology has the potential to disrupt both existing financial and technology industries, similar with the manner in which mobile internet has disrupted the PC internet and many other offline industries.
The company has submitted a new budget plan to its board of directors that if approved, could see Meitu purchase as much as $100 million in new crypto assets over the year.
What’s interesting, however, is that the company’s financials haven’t reacted much. In fact, shares in Meitu closed more than six percent lower than where they were previously, suggesting that the idea of a company buying bitcoin is losing appeal or becoming more commonplace.
Six months ago, when it was rare that a large corporation was buying up BTC shares, one was quick to see shareholders react with positivity, as they were now garnering quick exposure to BTC – exposure that they probably wouldn’t have had otherwise.
Is This News Becoming Too Common?
However, now that companies are starting to invest in crypto more and more, financial change is nowhere near as big or as noticeable as it has been in the past. Another example of this occurred just a few days ago when it was announced that MicroStrategy purchased more units of BTC. Shares in the company did not move higher, and instead experienced dips along with the bitcoin price.
But while all this may be concerning, one can take solace in the idea that BTC has risen to $51,000 per unit as of yesterday, and that with heavy support from legitimate companies, perhaps bitcoin can finally earn a solid place alongside fiat.
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