Chinese Company Sells Entire Crypto Holdings for $80 Million Ahead of Bitcoin Surge
Meitu, the Chinese company known for its popular selfie app, has announced the sale of its entire cryptocurrency portfolio, which included Bitcoin and Ethereum, netting nearly $80 million.
The Hong Kong-listed company, which gained attention for its public cryptocurrency investments, made this move just before Bitcoin’s price surpassed the $100,000 mark.
As of December 4, Meitu had liquidated its holdings, which included 940 BTC and 31,000 ETH, for a total of $79.63 million in profits. This comes after the company initially purchased nearly $100 million worth of these two major cryptocurrencies back in 2021. Following this sale, Meitu no longer holds any Bitcoin or Ethereum.
The company’s decision to offload its crypto assets coincides with a surge in Bitcoin prices, largely spurred by the re-election of former U.S. president Donald Trump. Trump’s crypto-friendly policies, including a promise to create a Bitcoin reserve, helped fuel optimism among investors. Bitcoin’s value has surged over 130% this year, recently crossing the $100,000 threshold, following Trump’s appointment of Paul Atkins, a known digital asset advocate, as the head of the Securities and Exchange Commission.
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Meitu’s venture into cryptocurrencies has been volatile, with the company facing significant losses during market downturns, particularly in mid-2022, when it warned of potential losses of up to 154% amid a broader market crisis. Despite the ups and downs of its crypto investments, Meitu has decided to distribute 80% of the gains from the sale as a special cash dividend to shareholders in mid-2024, with the remainder allocated to support the company’s operations.
Looking forward, Meitu plans to refocus on its core business of photo, video, and design products. Its recent efforts to integrate artificial intelligence into its editing apps have proven successful, with the company reporting a 233% increase in profits for 2023, driven by the AI-driven features.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
