Meitu, the Hong Kong-listed photo-editing software maker, posted a $2.6 million loss in the second quarter from the negative revaluation of its acquired cryptocurrency.
Bitcoin investments yielded Meitu a negative financial result of $17.3 million. The value of Ethereum on the company’s balance sheet rose by $14.7 million.
In March–April the company allocated funds for cryptocurrency purchases totaling $100 million. $49.5 million went toward purchasing 940.89 BTC, and $50.5 million toward 31,000 ETH. It used the services of Coinbase, the institutional-focused broker-dealer.
As of June 30, Meitu’s position in Bitcoin was valued at $32.2 million, and Ethereum at $65.2 million.
The changes in the report are shown as “impairment losses on assets”. The company does not plan to divest its cryptocurrencies in the near future.
“The blockchain industry is still in its early stages of development, and cryptocurrencies have substantial growth potential,” the document says.
Earlier in February, Coinbase’s brokerage service helped Elon Musk’s Tesla invest $1.5 billion in bitcoin.
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