Chinese tech behemoth Meitu has revealed that it has acquired З79.42 Bitcoins and 15,000 Ether for $22.3 million and $17.7 million. The purchases are said to have taken place on March 5 in the open market.
This acquisition became part of Meitu’s Board of Directors ‘Cryptocurrency Investment Plan’, according to which Meitu Inc. can invest up to $100 million in digital assets. For this, the company can use existing cash reserves, except for proceeds from the initial public offering of the corporation’s shares.
The decision of the Meitu Board of Directors to establish a “Cryptocurrency Investment Plan” is explained by the potential of blockchain technology, which could disturb the present financial and technological industries, like how the mobile Internet supplanted the Internet on the PC.
At the same time, it is believed that cryptocurrencies have enough opportunities to increase their value, so they can serve as tools for diversifying funds (which are prone to depreciation due to the aggressive expansion in the money issuance by central banks).
Five large institutions based in China have invested heavily in Bitcoin this year, according to Longhash data.
Meitu is the first major Asian company to formally announce the acquisition of Bitcoin and Ethereum, calling them an alternative to protect against inflation.
Just recently fin-tech giant MicroStrategy disclosed it continues to buy BTC amid a decline in its own shares.
