Hong Kong-based tech company Meitu raised the total value of its cryptocurrency holdings to around $ 100 million, after the company announced the purchase of an additional $ 10 million worth of Bitcoin (BTC) on the 8th. April.
Meitu HK, the wholly-owned Hong Kong subsidiary of Meitu Inc (incorporated in the Cayman Islands), acquired 175.67798279 units of Bitcoin for a combined price of $ 10 million, or a purchase price of approximately 57,000 dollars per piece. The purchase would have been made using existing cash reserves, based on spot prices in the open market.
Over the past month, Meitu has amassed $ 90 million in cryptocurrency purchases, split between Bitcoin and Ether (ETH). Following Thursday’s latest acquisition, the company has now bought $ 49.5 million worth of BTC and $ 50.5 million from Ethereum.
The company previously said it could not have made its previous purchases without the help of the US-based cryptocurrency exchange Coinbase. No mention of Coinbase was made in the latest disclosure, however, the exchange has been responsible for managing the investments of other corporate entities, such as MicroStrategy, in the past.
The disclosure laid out the reasons the company had added to its Bitcoin holdings, comparing the potential impact of the technology to that of mobile internet:
“The Council believes that blockchain technology has the potential to disrupt both existing financial and technology industries, in the same way that mobile internet has disrupted the PC internet and many other offline industries.”
The disclosure notes Bitcoin’s usefulness as a store of value, a feature aided by its limited supply. Mention is also made of its portability and its position as a hedge against inflation caused by the aggressive money printing practices of central banks.
“Some of these features potentially even make Bitcoin a superior form to other alternative value stores such as gold, gemstone, and real estate. Being an alternative store of value, its price is primarily a function of future demand which is driven by consensus among investors and the general public, ”the statement said.
China-listed companies walk rough waters when investing in cryptocurrencies. China recognizes cryptocurrencies as commodities but not as usable currencies. Their trade in fiat currency is prohibited, but due to their status as a commodity, some have suggested that cryptocurrencies could still be traded with each other in the same way as other commodities, in what remains. a hazy situation in the Far East.