Meitu increased its total crypto investment to $100 million in the following months. Meitu, founded in 2008, is the latest publicly listed company to plug millions in digital assets as an insurance policy to depreciating fiat money. Elon Musk’s Tesla famously purchased $1.5 billion worth of Bitcoin in February. This plan included the option of buying up to $100 million worth of cryptocurrencies using the company’s existing cash reserves and remaining proceeds from their IPO. The announcement included the current worth and value of the digital assets.
The world’s number one digital currency is now trading for about 70 percent less than where it was last November. After reaching an all-time high of $68,000 per unit, bitcoin is struggling to retain positions at the $19,000 and $20,000 levels. This was when the crypto industry was really reaching a near-peak height. At the time, bitcoin was trading for about $57,000, though it would eventually shoot beyond the $60,000 mark just eight months later. Beauty software company Meitu says it has lost a lot of money on crypto. Meitu is a Hong Kong-listed smartphone manufacturer and selfie app software company with a market cap of $11.76 billion.
This was revealed in adisclosure filingon Thursday with the Hong Kong Stock exchange. “Some of these features potentially even render Bitcoin as a superior form to other alternative stores of value such as gold, precious stone and real estate. Being an alternative store of https://cryptoclubocc.com/ value, its price is primarily a function of future demand that is driven by consensus of investors and the general public,” states the disclosure statement. Block, a payment provider owned by former Twitter CEO Jack Dorsey, bought 8,027 bitcoins for $220 million in total.
Meitu Believes More in Crypto Than in Fiat
As one of the most popular hardware wallet manufacturers, the class-action lawsuit will remain a high-profile and closely followed case in the blockchain and cryptocurrency industry. El Salvador buys more bitcoins as the cryptocurrency’s price falls to $36,000. Thefirm, which makes cryptocurrency mining equipment, reported sales of 1.65 billion yuan (around $238 million), a year-over-year growth of 52.8%. A new cryptocurrency bill was approved by the Chamber of Deputies of the Brazilian Congress last week, and is now awaiting review by the Senate for approval. 5 Things to Consider Before Investing in Cryptocurrency There is no question that cryptocurrencies have established a new investing sector.
- She thought that Tesla could have to put down an impairment charge soon and admit to the Securities and Exchange Commission that it has lost some 100 million dollars on its initial crypto investment.
- CryptoPunks are widely considered to be the first and most important NFTs created on the Ethereum blockchain.
- It is understood that the app-maker intends to use some of the ETH in its holdings to launch decentralized applications in the future.
- “The expected increase in net loss is primarily due to the Acquired Cryptocurrencies Impairment.”
- Total monthly active users for Meitu slipped 12% in 2021, and the firm now trades just over 10% of its debut price.
Canaan was founded in 2013 and specializes in ASIC high-performance computing chip design, chip research, and development, computing equipment production, and software services that facilitate mining. The Beijing-based mining machine maker reported sales of 1.65 billion yuan (around $238 million). Matthew Hrones is a content creator https://cryptoclubocc.com/american-university-appropriates-4-million-for-staking-3-cryptocurrencies/ who is in the industry since the beginning of 2017. Get the latest crypto news, updates, and reports by subscribing to our free newsletter. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. Sign up today for our latest deep dive newsletters, Pro Crypto Ecosystems and Pro Deals.
Ethereum ($ETH) price prediction: what is the outlook for the second-largest crypto in 2021 and beyond?
As a result, it could lead to a net loss for the firm in its report for the year’s second quarter. Over the last year, the decentralized finance space has been making waves in the financial sector, building on blockchain technology to decentralize a multitude… Colombia’s government has chosen to fund a new app, board game and book to educate children and young people about investing in cryptocurrencies and the… The cryptocurrency market faced a fresh round of selling on Sept. 20 as global financial markets fell under pressure thanks to fears surrounding the potential… It subsequently expanded its portfolio by purchasing 16,000 Ether and 386 bitcoin on March 17 before its latest purchase on Thursday.
Meitu is one of a few institutional investors that chose to get involved in crypto as the space began growing to unprecedented levels. The company – much like MicroStrategy and Square – felt that the industry was strong enough and, at the time, stable enough that a few investments were warranted. The company eventually put in hundreds of millions of dollars into the space, though now, the firm’s crypto stash is seriously down for the count. It is estimated that the firm has lost close to $50 million in digital asset funds. The Hong Kong-based, publicly traded app maker now holds 31,000 ETH and 940 BTC in its treasury — totaling approximately $50 million per cryptocurrency. Meitu has been listed on Hong Kong Stock Exchange since 2016 and is the first publicly-listed Chinese company to announce its crypto purchase.
Hong Kong-listed Firm Meitu Bought $22M of Ether, $17.9M of Bitcoin
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. That latter group includes beauty app and software as a service companyMeitu(1357.HK), which hasjust told investorsits upcoming interim results will be anything but beautiful. In recent times, Meitu chairman Cai Wensheng has been an outspoken advocate of blockchain technologies. Though China has banned initial coin offerings and crypto trading exchanges, Cai said in 2018 that he personally bought about 10,000 bitcoins. China-based tech firm Canaan has boosted its Bitcoin holdings by 180 to a total of 346 BTC despite the market downturn. Robinhood currently allows customers to buy, sell and hold cryptocurrencies.