Hong Kong-listed Meitu invests $40m in Bitcoin and Ethereum

Hong Kong-listed Meitu, a photo-editing software developer, invested $40 million in the two largest cryptocurrencies by market capitalization.

According to the statement, on March 5 Meitu purchased on the open market 15,000 ETH and 379.12 BTC, about $22.1 million and $17.9 million respectively.

Purchases were made in accordance with the cryptocurrency investment plan previously approved by the board of directors, under which the company may spend up to $100 million from its cash reserves for these purposes.

The Meitu board believes that cryptocurrencies have enough potential for further price growth and can serve as a means of diversifying reserves. It also expects that long-term investments in the two leading cryptocurrencies will enhance its shareholder value.

“What is more important, the Board believes this demonstrates to investors and stakeholders that the company has plans and the resolve to embrace technological evolution, thereby preparing its transition into the blockchain industry,” the statement says.

The company is currently evaluating the feasibility of integrating blockchain technologies, including the launch of dApps on the Ethereum network. Meitu is also scouting for suitable projects in the field to invest in, with many of them accepting the network’s cryptocurrency as consideration.

Bitcoin is viewed as an alternative store of value that could hedge against currency depreciation caused by central bank policy.

In March, MicroStrategy, the first publicly listed company in the world to invest in Bitcoin, increased the amount of its first cryptocurrency to 91,064 BTC. At the time of writing, this stood at about $4.62 billion, although the firm had spent about $2.2 billion on purchases.

Subscribe to ForkLog news on Twitter!