The Chinese app Meitu is buying Bitcoin and Ethereum worth millions

The user interface of the Meitu app will be displayed on a mobile phone on February 22, 2021 in Yichang, central China’s Hubei Province.

Costfoto | Barcroft Media | Getty Images

Meitu, a Chinese company that makes a photo editing app, has bought Bitcoin and Ether, making it the newest company to buy cryptocurrencies.

The Hong Kong-listed company announced on Sunday that it had purchased $ 22.1 million of ether and $ 17.9 million of bitcoin on March 5.

Meitu follows electric car makers Tesla and Square in buying Bitcoin. However, the Chinese appmaker appears to be the first major company to buy Ether, a cryptocurrency that works on the Ethereum blockchain.

Bitcoin is based on its own blockchain, the technology on which it is based.

Ethereum is a completely different network. It’s an open source blockchain that developers can use to build apps on it. The cryptocurrency ether can be used to pay for or interact with services that are built on top of the Ethereum network. These are often referred to as decentralized applications or dApps.

Meitu said in a statement that “Blockchain technology has the potential to disrupt both the existing finance and tech industries, much like the way mobile internet has disrupted PC internet and many other offline industries.”

“The Board of Directors believes that there is ample room for cryptocurrencies to grow in value and that allocating part of its treasury to cryptocurrencies can also serve as diversification for holding cash (which is subject to devaluation pressures due to the aggressive increase in money supply by central banks around the world) Treasury Management, “said Meitu.

The move shows investors that Meitu “has the vision and determination to accept technological developments and thus prepare for its foray into the blockchain industry,” said Meitu.

Meitu’s shares rose 3.3% at 1:44 p.m. Hong Kong time after falling more than 14% earlier in the day.

Meitu noted that cryptocurrency prices are “still very volatile”.

The company said it was examining “the feasibility of integrating blockchain technologies with its various overseas businesses,” including the potential introduction of Ethereum-based apps or investing in other blockchain companies.

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