Meitu, a Chinese Technology Company, has purchased 379.12 Bitcoin and 15k Ethereum
The purchase was made on the 5th of March at a cost of $22.1M and $17.9M respectively
Meitu made the purchases as part of its crypto investment strategy approved by its board of directors
Staking sats and ETH by institutions is now a global affair
The Chinese technology company of Meitu, has announced that it purchased 379.12 Bitcoin and 15,000 Ethereum at a cost of $22.1 million and $17.9 million. According to the official announcement, the purchases of Bitcoin and Ethereum were made on the 5th of March in open market transactions.
Meitu Purchases Bitcoin and Ethereum as Part of Crypto Investment Plan
The purchases are part of Meitu’s ‘Cryptocurrency Investment Plan’ approved by its board of directors under which Meitu Inc. can purchase up to $100 million worth of digital assets, by utilizing existing cash reserves excluding proceeds from the Company’s initial public offering.
The decision of Meitu’s board of directors to come up with a ‘Cryptocurrency Investment Plan’ is motivated by the potential of blockchain technology as explained below.
The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries.
The Board believes that the blockchain industry is still in its early stage, analogous to the mobile internet industry in circa 2005.
Against this backdrop, the Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.
Institutions Staking Sats and ETH Has Now Gone Global
According to data from Longhash, five major institutions based in China have made significant investments in Bitcoin this year.
Meitu is the first major non-Western company to voluntarily declare its purchases of Bitcoin and Ethereum. The company buying both assets and adding them to its treasury is a sign of things to come as global institutions look for alternative stores of value to hedge against inflation.