Software Firm Meitu Buys $22M of Ether, $17.9M Bitcoin for Its Treasury

Software Firm Meitu Buys $22M of Ether, $17.9M Bitcoin for Its Treasury

Blockchain Featured
March 7, 2021 by Kofi Ahmed
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Cayman Islands-incorporated Meitu said it bought 15,000 ETH and 379.1 BTC in open market transactions on March 5.
Photo by Precondo CA on Unsplash

Hong Kong-listed Meitu Inc. , which makes image and video processing software, said it had purchased $22 million in ether (ETH, +0.59%) (ETH) and $17.9 million of bitcoin (BTC, +3.21%) (BTC), making it the first time a firm has disclosed a major purchase of ETH for its treasury.

  • Meitu said it bought 15,000 ETH and 379.1 BTC in open market transactions on March 5.
  • The purchases were under the terms of a previously board-approved cryptocurrency investment plan that allows the company to put up to $100 million of crypto, financed by cash reserves other than any remaining proceeds from Meitu’s 2016 IPO.
  • While the company said that while buying crypto helps diversify its holdings away from cash, “More importantly, the Board considers this a demonstration to investors and stakeholders that the Group has the vision and determination to embrace technological evolution, and hence preparing its foray into the blockchain industry.”
  • The company said it’s evaluating the feasibility of integrating blockchain tech into its overseas business, including launching Ethereum-based dApps. ETH is the native token of the Ethereum blockchain. It’s also evaluating potential investments in blockchain-based projects, many of which accept ETH as consideration for investment.

Source: Coindesk

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