Chinese tech company Meitu, Inc. headquartered in Xiamen, Fujian has decided to purchase 15,000 units of Ether and 379.1214267 units of Bitcoin at the cost of a whopping US$22.1 million and US$17.9 million respectively as publicized in a Press Release signed by chairman Cai Wensheng.
The Chinese tech company recently made this known to shareholders and potential investors, declaring that the bold move was pursuant to a cryptocurrency investment plan that was previously approved by the board of directors of the company.
The plan which was aptly termed “the Cryptocurrency Investment Plan” was established and approved by the company with the aim of making a net purchase of US$100 million—the net purchase here referring to the difference between the aggregate market value of cryptocurrencies purchased by the group and the aggregate market value of cryptocurrencies sold at the time of sale.
This plan was inaugurated as a result of the company’s vision and resolution to flow with technological advancements as they come – after all, it is a tech establishment – and the idea that Blockchain is likely the future of technology, capable of influencing a surge in the values of cryptocurrencies as it develops; and, consequently, allocating a part of its treasury to cryptocurrency seems like a good idea at this time.
Furthermore, the company is currently assessing the practicability of integrating Blockchain technologies in its businesses overseas which would include launching Ethereum-based dApps. In addition to this, it would be looking out for businesses utilizing the Blockchain technology that could serve as potential investments. As a result, purchasing Ether which would serve as the company’s gas reserves for the implementation of the above seemed necessary.
Meitu, Inc. is a Chinese technology company. It was established in 2008 and is headquartered in Xiamen, Fujian. As of June 2020, the establishment which is focused on AI-driven image-and-video processing technologies and social community has its distinct apps activated on over 2 billion unique devices and a total of 295 million monthly active users. Now, it is determined to get into the Crypto space.
This recent development is coming not long after establishments like MicroStrategy and Tesla showed interest in the cryptocurrency world, making investments in huge amounts of Bitcoins. MicroStrategy, in particular, holds about US$4.4 billion in Bitcoin after recently purchasing 205 bitcoins.
Tesla, on the other hand, had invested a whopping US$1.5 billion dollars in Bitcoin, influencing a surge in crypto trading volumes at 17%, and subsequently making US$1 billion profit in less than a month from Bitcoin. For context, Tesla made US$39 million in all of Q4 of 2018.
In 2019, the VP of Apple Pay Jennifer Bailey mentioned the company’s interest in cryptocurrency, saying, “we are watching cryptocurrency, we think it’s interesting. We think it has interesting long-term potential”. She made this known on CNN’s “The Table Show”.
It is not out of place to suggest that these moves by the tech giants have in some way influenced the Cryptocurrency Investment Plan by Meitu, Inc., and will in the near future influence the decisions of other companies.
Seeing as cryptocurrency prices are determined by demand, more companies investing in cryptocurrencies could potentially influence higher surges in their prices, resulting in acceptance from more entities and ultimately bringing to reality the idea that Crypto is the future.