Key Details of Meitu's Latest Cryptocurrency Acquisition
On March 17, Meitu Inc. (1357.HK) announced through an official bulletin that its wholly-owned subsidiary, Miracle Vision, had purchased:
- 16,000 units of Ethereum (ETH): ~$28.4 million total
- 386.08 units of Bitcoin (BTC): ~$21.6 million total
This brings Meitu’s total cryptocurrency holdings to approximately $90 million (¥580 million RMB), acquired through multiple transactions over the past month.
Transaction Averages:
- Ethereum: $1,775 per unit
- Bitcoin: $55,900 per unit
Context: Meitu’s Aggressive Crypto Strategy
This latest purchase follows Meitu’s March 8 acquisition of:
- 15,000 ETH (~$22.1 million; avg. $1,473/unit)
- 379.12 BTC (~$17.9 million; avg. $47,200/unit)
The company is executing a board-approved cryptocurrency investment plan with a $100 million cap, funded by existing cash reserves. With $90 million already deployed, analysts speculate whether Meitu will utilize the remaining $10 million amid market volatility.
Bitcoin Price Fluctuations:
- 2021 Highs: $61,000 (March 13)
- Current Range: ~$55,000 (post-announcement dip to sub-$55K)
Strategic Rationale and Blockchain Ambitions
- Subsidiary Background: Miracle Vision, registered in Singapore, handles app operations, marketing, and investments.
- Long-Term Vision: Meitu hints at potential entry into blockchain-based services, though specifics remain undisclosed.
Leadership Ties to Crypto:
- Cai Wensheng (Meitu Chairman): Early investor in OKEx (major crypto exchange) and other blockchain ventures.
- Past Controversies: Denied links to the "BEC" token project and ICO-related rumors.
FAQ Section
Q1: Why is Meitu investing heavily in cryptocurrency?
A: Meitu aims to diversify its treasury assets and position itself for future blockchain opportunities, aligning with global corporate trends like Tesla and MicroStrategy.
Q2: What risks does Meitu face with these purchases?
A: Cryptocurrency’s volatility (e.g., BTC’s 13% drop from $61K to ~$53K) poses short-term financial risks, though Meitu’s dollar-cost averaging strategy may mitigate this.
Q3: Will Meitu expand beyond investment into blockchain products?
A: The company has signaled intent but hasn’t detailed plans. Its subsidiary structure and leadership’s crypto expertise suggest potential developments.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice.