Publicly-listed app maker Meitu buys another $49 million in ETH and BTC via subsidiary
March 17, 2021, 11:50AM EDT
1 min read
The publicly-listed Chinese technology company Meitu has acquired $28.4 million worth of ether and $21.6 million of bitcoin via a subsidiary.
In a disclosure filing on Wednesday, Meitu said the bitcoin acquisition would compose part of Miracle Vision's treasury. The ether purchase is intended to play a role in its wider aspirations in the blockchain space.
Meitu, a Chinese photo retouching app listed in Hong Kong, first bought cryptocurrency earlier this month, when it disclosed it had acquired $40 million in BTC and ETH as part of a so-called "Cryptocurrency Investment Plan." The plan includes the purchase of $100 million worth of crypto.
Now, its Singapore-based subsidiary has purchased close to an additional $50 million. Miracle Vision also creates beauty and communication-creator apps.
Meitu's purchase earlier this month included plans to create products that integrate blockchain. It reiterated the sentiment with Miracle Vision's purchase disclosure:
"The Group is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including but not limited to launching Ethereum-based dApps, as well as identifying suitable overseas blockchain-based projects for potential investments...that can be synergistic to its large user base that has hundreds million monthly active users globally."
The firm said purchasing ether is a "logical preparation" for these initiatives. This ether would become the transaction expenditure reserve for any potential decentralized apps and investments, according to the statement.
The bitcoin purchase is part of a wider allocation strategy, according to the firm.
"The Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management," it said in the disclosure.