December 09, 2024
By Anjali Kocchar
Hong Kong-listed selfie app operator Meitu has announced the sale of its entire cryptocurrency holdings, earning a profit of nearly US$80 million as Bitcoin surged past the US$100,000 milestone. The company, known for its photo and video editing apps, had purchased its crypto portfolio in March and April 2021, investing close to US$100 million in bitcoin and ether.
In a filing to the Hong Kong stock exchange, Meitu disclosed that it had been selling its crypto holdings since last month. By December 4, the company had completely exited its cryptocurrency investments, selling 940 bitcoins and 31,000 ether at an aggregate value of nearly US$180 million. This decision comes during a historic rally in the crypto market, fueled by optimism after the re-election of Donald Trump and his appointment of digital-asset advocate Paul Atkins as head of the US Securities and Exchange Commission.
Meitu’s journey with cryptocurrency has been marked by volatility. In 2022, the company warned investors of widening losses due to market turmoil and controversies surrounding the sector. Despite these challenges, Meitu’s decision to sell ahead of Bitcoin’s record-breaking surge proved timely, securing significant gains for the company.
Meitu plans to use 80 per cent of the profits to pay shareholders a special cash dividend, scheduled for June or July 2025. The remaining funds will be allocated as working capital to support the company’s focus on its core products. In recent years, Meitu has struggled to monetise its apps effectively, with unsuccessful ventures into smartphone production and social media. However, its recent integration of artificial intelligence tools into its photo and video editing apps has driven a significant turnaround.
In March 2023, Meitu reported a 233 per cent year-on-year surge in profits, attributed to the success of its AI-powered tools. Despite this positive momentum, Meitu’s stock price remains 65 per cent lower than its initial public offering in 2016, trading at HK$2.95 (40 US cents) as of Thursday morning, December 5.
The company’s crypto investments, though risky, have ultimately bolstered its financial position as it refocuses on developing innovative solutions for its users. Meitu’s strategic pivot towards stabilizing its core company and rewarding shareholders is highlighted by its decision to abandon the cryptocurrency market during a record surge.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
