Chinese tech giant Meitu, which previously acquired approximately $100 million worth of Bitcoin and Ethereum, has now disclosed its deliberation on divesting from its cryptocurrency holdings. Although there is no concrete strategy in place for liquidating these assets, Meitu is exploring the option of stepping away from the cryptocurrency market.
Meitu, renowned for its selfie-editing software, made substantial investments in crypto during the bullish trends of 2021. This investment encompassed 31,000 units of Ether and roughly 765 units of Bitcoin, equating to $100 million in valuation at that point in time. Subsequently, the value of these assets experienced a significant decline, leading to substantial losses. However, recent resurgence in the cryptocurrency market has allowed Meitu to partially recover from these losses. The company’s choice to shift its focus away from crypto investment is a response to the evolving market dynamics and the inherent volatility of the cryptocurrency space.
Kang Yicong, Meitu’s Senior Investor Relations Manager, clarified that the initial crypto acquisitions were part of a strategic move and that the company has refrained from making further investments in this domain. She also revealed that while Meitu is open to the idea of selling its cryptocurrency holdings when the timing is right, there is currently no specific plan in place for their disposition.
Regarding future prospects, Yicong underscored the increasing global interest in Meitu’s AI-driven art and drawing features. She stressed that these AI-related areas are anticipated to make a substantial contribution to the company’s earnings, while their cryptocurrency holdings are no longer the primary focus.
Meitu’s forward-looking strategy revolves around international markets, with a particular emphasis on regions like Southeast Asia, Japan, South Korea, and Europe. The company’s objective is to adapt and tailor its successful products from the Chinese market for expansion on an international scale.