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Chinese Tech Firm Meitu acquires $50 Million worth of Bitcoin and Ethereum

Chinese Tech Firm Meitu acquires $50 Million worth of Bitcoin and Ethereum

The prominent Chinese technology firm, Meitu revealed that the company had expanded its crypto portfolio by adding 386 Bitcoin and 16,000 Ethereum. As per the official announcement, the Hong Kong-listed software company purchased approximately $50 million worth of Bitcoin and Ethereum on 17th March. Meitu emphasized that blockchain technology has the capability of disrupting the financial sector. The company also discussed the advantages of cryptocurrency assets. This month, Meitu bought around $40 million worth of cryptocurrency assets, including 15,000 Ethereum and 379 Bitcoin. 

The firm advocated that buying Ether is a logical preparation for various initiatives. As per the statement, this ether would act as a transaction expenditure reserve for any potential decentralized apps and investments. The Bitcoin acquisition is part of a broader allocation strategy, according to the firm. The company also mentioned the increasing trend of massive institutions like Tesla and MicroStrategy incorporating Bitcoin. Thus, growing acceptance of cryptocurrency as a payment for goods and services in mainstream society for the additional purchase. 

Meitu owns $90 Million worth of Cryptocurrencies.

As per Meitu’s figures, they now hold 31,000 Ether and around 762.21 Bitcoins, totaling $90 million. Meitu has witnessed its stock price shrink massively in current years, falling from HK$18 in 2017 to HK$1.5 just earlier this year. As they advance their 13th year in business, the company is looking towards digital currencies in a new way. The people leading Meitu consider that cryptocurrencies and blockchain technology may have many benefits over prevailing systems and institutions. Meitu, established in 2008, launched Hong Kong’s most extensive IPO in years in 2016 when it was listed on the stock exchange. 

Moreover, Cai Wensheng, Chairman and Founder of Meitu, remained frank regarding Bitcoin and other cryptocurrencies. In 2018, Wensheng discussed through an open group Q&A session on WeChat that he has more than 10,000 Bitcoin. Nevertheless, it seems doubtful that numerous more publicly listed Chinese companies will soon declare large crypto purchases, as China’s regulatory environment is questionable. Recently, China accepts Bitcoin as a virtual commodity yet bans trading platforms from exchanging legal tender for virtual currencies or tokens.

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