Chinese company Meitu is buying Ethereum and Bitcoin worth $ 50 million and adding $ 90 million in net purchases
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According to the board, they see great acceptance in China and countries from Southeast Asia. Companies considered “conservative” are currently exploring cryptocurrencies and blockchain technology.
March 17, 2021 at 10:58 p.m. UTC · · 2 minutes read
Chinese company Meitu recently announced another crypto investment and bought another 16,000 ETH (around $ 28.4 million) and 386 bitcoins (around $ 21.6 million). Shortly after buying ETH and BTC on March 5, the company made a net purchase of $ 90 million worth of crypto.
A $ 100 million goal
The company made the additional purchase through Miracle Vision, a subsidiary of Meitu, in line with the Cryptocurrency Investment Plan. The main goal is to use their cash reserves to achieve a net purchase value of at least $ 100 million in crypto, so the company could soon add another $ 10 million.
On March 5, the company opened Bought 15,000 ETH ($ 22.1 million) and 379 BTC ($ 17.9 million). Meitu now holds $ 50.4 million in ether and $ 39.5 million in bitcoin. The move follows the company’s previous statement on cash devaluation.
“The Board of Directors believes that cryptocurrencies offer ample room to grow in value and that allocating part of its treasury to cryptocurrencies can also serve as diversification for holding cash.”
The company believes digital assets have more value than declining fiat, making them better stores of value.
We can also relate this investment to increasing monetary expansion in the US. The US has passed bill allocating $ 1.9 trillion in a COVID-19 aid package to “cure” the American economy with $ 1,400 of stimulus checks.
This, of course, means the Federal Reserve will have to print $ 1.9 trillion. But a new one survey found that at least 2 to 5 Americans will use the stimulus check to invest in bitcoin.
The institutional growth of cryptocurrencies
The company also outlined the increasing adoption of cryptocurrencies by financial institutions around the world – industry giants like Tesla, Grayscale, and MicroStrategy recently made large purchases of crypto assets.
According to the board, more and more companies across China and countries from Southeast Asia are using crypto. Even companies considered “conservative” are currently exploring cryptocurrencies and blockchain technology, such as:
- Insurance companies that make crypto investments
- Traditional investment funds based on grayscale through the creation of crypto funds
- Listed companies adding cryptocurrencies to their treasury management and even considering accepting crypto payments
- Banks that provide crypto trading and custody services
- Regulators and policy makers offering licenses for crypto exchanges
The company warned its investors about the inherent volatility of the crypto market. Likewise, depending on the market, the company could make another purchase or sell its funds.
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