Meitu now holds $100 million in BTC and Ether after latest Bitcoin purchase
Hong-Kong-based tech company Meitu has additionally increased cryptocurrency holdings to around $100 million, after the firm disclosed another purchase of $10 million worth of Bitcoin on April 8.
Meitu HK, the wholly-owned Hong-Kong subsidiary of Meitu Inc, acquired a total of 175.67798279 Bitcoin in $10 million, a purchase price of around $57,000 per coin. The trade was made using existing cash reserves, based on spot prices on the open market.
Previously around a month ago, Meitu disclosed $90 million worth of cryptocurrency purchases, combined between Bitcoin and Ether. According to the announcement, the firm purchased $49.5 million worth of BTC and $50.5 million worth of ETH.
The firm before stated that it couldn’t have made its prior purchases without getting help from Coinbase. This time it did not mention Coinbase. However, the Coinbase exchange has already dealt for handling the investments of other corporate entities, such as MicroStrategy, in the past.
The disclosure laid out the firm’s objective for adding to its Bitcoin holdings, comparing the technology’s potential impact to that of the mobile internet:
“The Board takes the view that 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 disclosure notes Bitcoin’s utility as a store of value, a key feature helped by its limited supply. Also mentioned are its portability and its position as a hedge against inflation caused by the aggressive money printing practices of central banks.
Disclosure statement says: “Some of these features potentially even render Bitcoin as a superior form to other alternative stores of value such as gold, precious stone and real estate. Being an alternative store of value, its price is primarily a function of future demand that is driven by consensus of investors and the general public,”
Publicly listed firms in China are facing a hard time while making cryptocurrency investments. China counts cryptocurrencies as commodities and not as operationally usable. Moreover, crypto trade with fiat money is prohibited, but due to their commodity status, some have suggested cryptocurrencies could still be traded with each other in the same manner as other commodities, in what remains a hazy situation in the far east.