In a bold financial move that has captured the attention of investors and tech observers alike, Meitu Inc. has doubled down on its cryptocurrency investment strategy. On April 8, the Hong Kong-listed company announced that its wholly-owned subsidiary, Meitu Hong Kong, purchased an additional 175.68 BTC for approximately $10 million in open market transactions. This latest acquisition brings Meitu’s total investment in digital assets to around **$100 million**, an amount nearly equivalent to its full-year gross profit in 2020.
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Strategic Shift: From Photo App to Crypto Investor
Meitu, best known for its popular photo-editing apps, has made headlines not for a new software update—but for its aggressive entry into the world of Bitcoin (BTC) and Ethereum (ETH). Since early March 2021, the company has issued multiple announcements detailing its crypto purchases:
- March 5 & March 17: Ethereum acquisitions
- March 7 & March 17: Initial Bitcoin purchases
- April 8: Additional $10 million in Bitcoin
These moves were made under a board-approved cryptocurrency investment plan, allowing Meitu to allocate up to $100 million of its cash reserves toward digital assets. With this latest purchase, the company has effectively exhausted its authorized investment limit, signaling strong confidence in the long-term value of blockchain-based assets.
This isn't just a speculative side venture—it represents a strategic pivot. By reallocating part of its cash holdings into crypto, Meitu aims to diversify financial risk, hedge against inflation, and position itself at the forefront of technological innovation.
Why Is Meitu Investing in Bitcoin?
In its official statements, Meitu outlined several key reasons behind this high-stakes decision:
- Value Appreciation Potential: The company believes cryptocurrencies like Bitcoin have significant upside due to their limited supply and growing institutional adoption.
- Risk Diversification: Holding large amounts of cash exposes companies to devaluation risks from inflation and currency fluctuations. Crypto offers an alternative store of value.
- Strategic Signaling: Entering the crypto space signals Meitu’s commitment to embracing emerging technologies—particularly blockchain—and sets the stage for potential future integration into its product ecosystem.
The sentiment is echoed by Meitu’s chairman, Cai Wensheng, a well-known advocate for blockchain technology. In a now-viral Weibo post, he wrote:
"Everyone and every company will face difficult moments. The only choice is to move forward, not run away. Believe that as long as we work hard, everything will get better!"
His words reflect a broader trend among tech entrepreneurs who see blockchain not just as a financial tool but as a transformative force.
Financial Context: A $100M Gamble
To understand the scale of this investment, consider Meitu’s recent financial performance:
- 2020 Total Revenue: RMB 1.194 billion (~$184 million)
- Gross Profit: RMB 794 million (~$122 million)
- Net Profit: RMB 60.9 million (~$9.4 million) — marking its first annual profit since inception
- Cash Reserves (as of Dec 31, 2020): ~RMB 1.1 billion (~$169 million)
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This means Meitu has committed roughly 82% of its annual gross profit—or nearly 60% of its total cash reserves—to cryptocurrency. It's a bold bet that underscores deep conviction in the asset class—but also carries substantial risk.
Market Reaction and Volatility Concerns
Since Meitu first revealed its crypto purchases on March 7, Bitcoin’s price has fluctuated significantly:
- March 7 entry point: ~$50,000 per BTC
- March 14 peak: Over $61,360
- April 8 trading range: Between $56,200 and $58,100
While BTC remains up from Meitu’s initial buy-in, the volatility highlights the inherent risks. Within a single 24-hour period (April 7–8), Bitcoin dropped over $2,000, contributing to **$1.78 billion in global liquidations**—with over 306,000 traders affected.
Industry experts caution that despite Bitcoin’s impressive gains, it still lacks widespread use as a payment method. Its primary function remains that of a high-risk, high-reward investment vehicle, subject to extreme price swings driven by market sentiment, regulatory news, and macroeconomic trends.
Core Keywords Integration
Throughout this analysis, several core keywords naturally emerge based on search intent and relevance:
- Bitcoin investment
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These terms reflect what users are actively searching for when exploring corporate involvement in cryptocurrency markets. By aligning content with these queries, we enhance discoverability while delivering valuable insights.
Frequently Asked Questions (FAQ)
Q: How much did Meitu invest in cryptocurrency?
A: Meitu has invested approximately $100 million in Bitcoin and Ethereum under a board-approved investment plan.
Q: Did Meitu use all its allocated funds for crypto?
A: Yes. The company has reached the $100 million cap set by its investment policy, meaning no further purchases can be made under the current authorization.
Q: Is Meitu still holding cash after buying crypto?
A: Yes. Despite spending $100 million, Meitu still held about $69 million in cash reserves after the transactions, based on its reported balance sheet.
Q: Why are companies investing in Bitcoin?
A: Companies invest in Bitcoin to diversify holdings, hedge against inflation, and signal innovation leadership. It's part of a broader trend of corporate treasury diversification into digital assets.
Q: What risks does Meitu face with this investment?
A: The main risks include extreme price volatility, regulatory uncertainty, lack of income generation from holdings, and potential reputational exposure if prices collapse.
Q: Could Meitu integrate blockchain into its apps?
A: While not confirmed, the investment may pave the way for future blockchain integrations—such as NFT-based photo ownership or decentralized identity features.
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Final Thoughts: A Symbolic Move with Real Consequences
Meitu’s decision to allocate such a significant portion of its profits to cryptocurrency marks more than a financial maneuver—it’s a symbolic declaration of faith in the future of decentralized technology. Whether this gamble pays off will depend heavily on Bitcoin’s long-term trajectory and broader market acceptance.
But one thing is clear: traditional tech companies are no longer sitting on the sidelines. With Meitu joining the ranks of firms like Tesla and MicroStrategy in embracing crypto, the line between fintech and legacy tech is blurring faster than ever.
As institutional adoption grows and digital assets become more integrated into corporate balance sheets, stories like Meitu’s will likely become less extraordinary—and more routine.
For investors and analysts watching closely, this moment may be remembered as a turning point: when consumer app companies began treating Bitcoin not as a fad, but as a legitimate asset class worth betting the house on—literally.