Chinese tech firm Meitu invests an additional £35.8M in BTC and ETH

By:
on Mar 19, 2021
  • The firm now holds 31,000 ETH and 764.08 BTC, bringing its crypto wealth to £64.45 million.
  • Per Meitu, the burgeoning crypto and blockchain spaces have a lot of growth potential.
  • Meitu is the first Chinese-listed firm to purchase such a large volume of BTC.

Meitu, a China-based software development company, has invested an additional £35.8 million in Bitcoin (BTC) and Ethereum (ETH). A report unveiled this news on March 18, noting that this purchase has seen the firm’s crypto holdings swell to £64.45 million. Reportedly, the company bought 386.08 BTC at £15.5 million and 16,000 ETH for approximately £23.3 million.

This is the second crypto purchase by the firm this month. On March 5, Meitu, which is listed in China and Hong Kong, made its first investment in the crypto space by buying 15,000 ETH for £15.11 million. On the same day, the company purchased 378 BTC for £12.83. As such, the Meitu now owns approximately 31,000 ETH and 764.08 BTC.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Per Meitu, cryptocurrencies are still in their initial stages of growth. However, the blockchain has already depicted its potential to become a disruptive instrument in the current financial and technology sectors.

The company went on to note that its board had noticed growing crypto adoption by mainstream companies such as Tesla and the increasing use of crypto as a payment means.

Stern crypto regulations in China still hinder mass adoption

Reportedly, this purchase has made Meitu the first Chinese-listed company to purchase such a large amount of BTC. While the firm’s decision could easily foster crypto adoption by other publicly-listed companies, analysts believe that it will be unlikely for the companies to make such crypto purchases any time soon. This is because China’s crypto regulations are still not clear.

While the Beijing Arbitration Committee (BAC) recently said that China’s ban on BTC is flexible. Reportedly, the country allows BTC’s use as a virtual commodity. However, using the coin as money is still prohibited.

Following the news of Meitu ETH and BTC purchases, both coins are trading bullishly. BTC is changing hands at £41,891.5 after gaining 6.26% over the past 24 hours. On the other hand, ETH is up 2.82% to trade £1,299.8.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
68% of retail CFD accounts lose money