Chinese tech company Meitu buys $ 40 million worth of Bitcoin and Ether

Chinese tech company Meitu buys $ 40 million worth of Bitcoin and Ether

Technology

Chinese tech company Meitu, known for its photo editing applications, announced on Sunday that it has made a significant investment, purchasing a total of $ 40 million worth of crypocurrencies.

What is Meitu
Meitu is famous for its ‘Selfie’ mobile applications developed for smartphones and has attracted more than 1 billion users worldwide. The latest interim results of 2020 report that the total monthly active users across all apps was 295.4 million in June 2020.

Meitu’s board believes that blockchain technology has the potential to disrupt the global financial and technology industries in a similar way to the rise of the Internet in the 1990s, as well as the mobile Internet industry in the 2000s.

What has Meitu done?
Meitu bought 15,000 units of Ether and 379,1214267 units of Bitcoin worth approximately $ 22.1 million and $ 17.9 million respectively on March 5 in open market transactions, the company revealed on Sunday. The purchase is the first tranche of the company’s investment plan to purchase up to $ 100 million in cryptocurrency, funded with cash reserves.

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Meitu reveals that it hopes to enter the blockchain industry by investing in Ether to be consumed on the Ethereum platform, a robust network for decentralized applications (dApps). dApps covers a range of areas, including games and social media. The company is evaluating the possibilities of integrating blockchain technology with its overseas businesses and looking for suitable investments in blockchain-based programs overseas.

A milestone
Meitu is also one of the first Chinese publicly traded companies to join Square, Tesla and MicroStrategy by holding bitcoin as part of its treasury management strategy.