Chinese selfie app operator Meitu, one of a few Hong Kong-listed companies to publicly disclose crypto investments, said it has sold all of its cryptocurrency holdings, netting nearly US$80 million just ahead of bitcoin’s price surge past US$100,000.
As of December 4, Meitu had sold its crypto portfolio that included 940 units of bitcoin and 31,000 units of ether, making gains of US$79.63 million, the company said in a statement on Wednesday. Hong Kong-listed Meitu, whose apps let users touch up their photos, bought nearly US$100 million worth of the world’s two largest crypto tokens in March and April in 2021, it said.
The company had been disposing of its crypto holdings since last month, and sold all at an aggregate value of nearly US$180 million. Meitu no longer holds any bitcoin or ether, according to a filing to the Hong Kong stock exchange.
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Meitu has cashed in its crypto holdings amid a price surge following the re-election last month of former US president Donald Trump, whose crypto-friendly rhetoric such as a promise to create a bitcoin reserve contributed to investor enthusiasm.
The world’s largest cryptocurrency has climbed more than 130 per cent since the beginning of this year, breaking US$100,000 for the first time on Thursday morning, after Trump selected digital-asset proponent Paul Atkins to head the Securities and Exchange Commission.
Meitu’s journey with cryptocurrencies has been bumpy amid wild swings in prices over the past couple of years. In July 2022, the company warned investors that its losses could widen by as much as 154 per cent in the first half of the year as the sector suffered market turmoil from a slew of controversies that year.
Meitu said on Wednesday that it would use 80 per cent of its crypto investment gains to pay shareholders a special dividend that will be made in cash in June or July next year.
The company will use the rest of the proceeds as working capital, as it looks to refocus on developing its core photo, video and design products.
Meitu has over the years struggled with bets to monetise its apps, including attempts to produce smartphones designed specifically for selfie enthusiasts and turning its selfie app into a social media platform.
But a recent push to incorporate artificial intelligence (AI) into its photo and video editing apps appears to have given a major boost to performance. The company said in March that its 2023 profits surged 233 per cent year on year thanks to its AI tools.
Meitu shares were up 3.15 per cent on Thursday morning to HK$2.95 (40 US cents), 65 per cent lower than its listing price in 2016.
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