Chinese software giant bought $40,000,00 in bitcoin and ethereum

March 11, 2021
8:40 pm

Meitu, the Chinese software giant has recently announced that the company has purchased 15,000 ETH worth a value of $22,1 million and 379 BTC with an estimated value of $17,9 million, and they are explaining their motives.

“The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries. The Board believes that the blockchain industry is still in its early stage, analogous to the mobile internet industry in circa 2005.

Against this backdrop, the Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.”

In addition, Meitu says that it purchased ETH as a preparation for its plans to enter the blockchain industry. The selfie app creator states that is currently looking for ways to incorporate the blockchain technology into its business while simultaneously finding blockchain-based projects for potential investments. Meitu is now the first major company to invest in ETH.

“Purchasing Ether is therefore a logical preparation for both initiatives, as the Ether purchased would become the gas reserve for the Group’s potential dAPP(s) to consume in the future, as well as being used as consideration for investing in blockchain-based projects that take Ether as consideration.”

Lastly, the Chinese software giant mentions it believes that BTC has aspects which causes it to be superior to gold as a store of value, making their BTC investment part of an asset allocation strategy.

“Bitcoin has several features that enable it to be a good alternative store of value, such as being limited in supply, its exchangeability into fiat money or goods and services, portability, and its potential to act as an effective hedge against depreciation of fiat currencies due to aggressive increase in money supply by central banks globally. Some of these features potentially even render Bitcoin as a superior form to other alternative stores of value such as gold, precious stone and real estate. Being an alternative store of value, its price is primarily a function of future demand that is driven by consensus of investors and the general public.”