Chinese Tech Company Purchases $22.1M in ETH and $17.9M in BTC in Preparation to Enter Blockchain Industry
Tobi Loba
3 min read
Meitu, the first known publicly traded Chinese company with a $12 billion market valuation, has announced the purchase of $22.1 million worth of Ethereum (ETH) and $17.9 million worth of Bitcoin (BTC) in preparation to enter the blockchain industry.
According to the image processing company listed in Hong Kong, the purchase was financed with its cash reserves.
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The Company noted:
“The Group has purchased 15,000 units of Ether and 379.1214267 units of Bitcoin (“BTC”), both cryptocurrencies, in open market transactions at an aggregate consideration of approximately US$22.1 million and US$17.9 million respectively, on March 5, 2021.
“These purchases were made pursuant to a cryptocurrency investment plan previously approved by the board of directors (the “Board”) of the Company (the “Cryptocurrency Investment Plan”), under which the Group may make a net purchase of up to US$100 million worth of cryptocurrencies, financed by its existing cash reserves other than any remaining proceeds from the Company’s initial public offering.”
Meitu Purchases Ethereum (ETH) In Preparation to Enter Blockchain Industry
According to the Chinese tech company, it’s evaluating to integrate blockchain technologies to its various overseas businesses, including launching Ethereum-based dApps and identifying suitable overseas blockchain-based projects for potential investments that can impact its large user base that has millions of monthly active users across the world.
The company added, “Purchasing Ether is therefore a logical preparation for both initiatives, as the Ether purchased would become the gas reserve for the Group’s potential dAPP(s) to consume in the future, as well as being used as consideration for investing in blockchain-based projects that take Ether as consideration.”
With China dominating Google searches for ETH over the years, the firm unsurprisingly purchased more Ethereum (ETH) than Bitcoin (BTC).
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“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,” the company added.
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