Meitu buys another $10 million in Bitcoin

Meitu issued the latest announcement on the Hong Kong Stock Exchange. After March 7 and March 17, the company purchased digital currency from the open market as investment again on April 8th. So far, the company's total investment in digital currency It has reached 100 million US dollars, reaching the purchase limit of the investment plan in the previous announcement.

According to related announcements, the main body of this purchase is Meitu Hong Kong, another wholly-owned subsidiary of Meitu, and this time only $10 million worth of Bitcoin was purchased, which is not as the same as the previous two admissions. And buy ether.

Specifically, in the first purchase on March 7, Meitu purchased more than 379 bitcoins, with an average purchase price of 47,214 US dollars; purchased 15,000 ether, with an average purchase price of 1,473 US dollars. In the second purchase on March 17, Meitu purchased more than 386 bitcoins at an average purchase price of 55,946 US dollars; purchased 16,000 ethers at an average purchase price of 1,775 US dollars. And this time Meitu purchased more than 175 bitcoins, with an average purchase price of US$56,922. If you add up the three times, Meitu currently holds more than 940 bitcoins, with an average purchase price of approximately 52,610 US dollars; holding 31,000 ethers, with an average purchase price of approximately 1,629 US dollars.

According to Coindesk's market data calculations, without considering the handling fee, if Meitu did not lighten up its position during the entire process, the above investment has recorded a floating profit of nearly 19 million US dollars as of press time, which exceeds the full-year net of Meitu in 2020. More than 200% of profit.

As for the reason for buying digital currency, the company once stated in the announcement when it purchased digital currency for the second time that it was because of "diversifying the risk of holding cash" and "increasing shareholder value", while the purchase of bitcoin was mainly an asset. One of the configuration strategies. The company’s founder Cai Wensheng stated earlier that “someone must be the first to eat crabs”. Meitu thus became the first Hong Kong listed company to buy Bitcoin and the first in the world to use Ether as a reserve of currency value. Listed company.

It is worth noting that Meitu is not the first listed company in the world to invest in digital currencies. As early as early February, Tesla announced that it had purchased $1.5 billion worth of Bitcoin. In the 10K file submitted to the US SEC at that time, Tesla explained the reason for the purchase as "according to the updated investment policy, decentralized And to maximize the return on the company’s non-investment cash assets", and the company also stated in the report that it will accept Bitcoin as a means of payment when permitted by law and reality.

The US stock-listed company MicroStrategy is taking even more aggressive steps. Earlier, the company announced that it would convert its main capital reserves to Bitcoin. On April 6, U.S. Eastern Time, the company’s latest announcement stated that it had bought another 253. Bitcoin, the purchase price after accounting for expenses is approximately $59,339, which makes the company currently hold approximately 91,579 bitcoins, valued at $2.23 billion.