China’s Publicly-Traded Company Meitu Buys Another 386 BTC ($21.6M) and 16k Ether ($28.4M)
As per the company's filing on Wednesday, a publicly-listed Chinese company, Meitu, has purchased an additional 16,000 Ether for $28.4 million and about 386 BTC for $21.6 million in the open market.
The document shows that this latest purchase has been made through Miracle Vision, the wholly-owned subsidiary of the beauty app. The purchase orders were made and completed on March 17, 2021, it further stated.
This latest purchase came exactly ten days after Meitu bought 15,000 Ether for $22.1 million and about 379 BTC for $17.9 million.
Bitcoin is currently trading around $55,350, down 10.2% from the $61,700 peak on March 13, while just under $1,800 Ether is trading 12.3% off of its ATH of $2,042 from Feb. 20.
Cai Wensheng, Chairman of Meitu, reiterated his bullish crypto thesis of blockchain technology having the potential to disrupt both existing financial and technology industries much like the Internet did, as the reason behind the decision to invest in digital assets.
The company Board believes the blockchain industry is still in its early stage, and cryptocurrencies have ample room for appreciation in value. By allocating part of its treasury in crypto assets, it can also serve as a diversification to holding cash in treasury management.
While Bitcoin, a store of value and effective hedge against depreciation of fiat currencies, is part of the company's asset allocation strategy, Ether is Meitu’s preparation for its foray into the blockchain industry.
The Group, consisting of Meitu and its subsidiaries, is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including launching Ethereum-based dApps and identifying suitable overseas blockchain-based projects for potential investments.
Here, Ether would become the gas reserve for their potential dAPP(s) to consume in the future and used for investing in blockchain-based projects that take Ether into consideration.