Meitu, a leading Chinese app developer, announced that the company has purchased $40 million worth of cryptocurrency assets, including 15,000 Ethereum and 379 Bitcoin. The company added that the recent purchases were made as a part of the cryptocurrency investment plan previously approved by the company’s board of directors.
According to the official announcement, Meitu purchased $22 million worth of Ethereum and $17.9 million worth of Bitcoin on 5 March 2021. The technology firm mentioned that it can make a net purchase of up to $100 million worth of cryptocurrency assets under its crypto investment plan.
In 2018, Cai Wensheng, Chairman and Founder of Meitu, mentioned in an open group Q&A session on WeChat, that he has achieved his goal of accruing 10,000 Bitcoin. Wensheng openly supported the use of blockchain technology and cryptocurrency assets like Bitcoin and Ethereum.
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“The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries. The Board believes that the blockchain industry is still in its early stage, analogous to the mobile internet industry in circa 2005. Against this backdrop, the Board believes cryptocurrencies like Bitcoin and Ethereum 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 in treasury management,” Meitu mentioned in the official announcement.
Institutional Buying of Bitcoin
Changpeng Zhao, CEO of cryptocurrency exchange Binance, recently mentioned in a tweet that several Asian companies are currently holding Bitcoin but they are not making it public. BTC’s institutional buying has surged in recent months as Tesla, MicroStrategy, Grayscale, Square and several other companies accumulated the world’s largest cryptocurrency in large amounts. Bitcoin received a push from the recent announcement by Meitu as the cryptocurrency jumped above $51,000 on Monday during the Asian session. As of writing, BTC is trading above $50,500 with a total market cap of more than $945 billion.