BCGAME - Free 5BTC Daily Bonus!- Meitu sells all its cryptocurrencies ahead of appreciation
- Chinese firm focuses on AI after profiting from Bitcoin and Ethereum
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Meitu, a Chinese company known for its photo editing apps, has announced the sale of all its cryptocurrency holdings, totaling 940 Bitcoins and 31.000 Ethers, for about US$180 million. This decision was made before Bitcoin reached the historic mark of US$100.000.
At the time of publication, the price of Bitcoin was quoted at US$100.592, up 4% in the last 24 hours.
Initially, between March and April 2021, Meitu invested around $100 million in cryptocurrencies, split almost equally between Bitcoin and Ethereum. However, the company has since decided to shift its strategic focus, prioritizing the development of subscription-based media services and artificial intelligence (AI) technologies.
The sale of digital assets took place in two phases: the first, last month, yielded $80 million; the second, recently completed, raised more than $100 million. Meitu made a net profit of approximately $80 million. The company plans to distribute 80% of this amount as a special dividend to shareholders, with the rest used to expand its core photo, video and design products.
This shift in strategy reflects the growing importance of AI in Meitu’s business, especially in its premium subscription model. The company noted that the sale of cryptocurrencies provided an opportunity to realize significant gains, allowing for greater investment in its core areas.
Meanwhile, the cryptocurrency market continues to evolve. Bitcoin recently surpassed the $100.000 mark, while Ethereum has also seen significant gains. These movements are influenced by factors such as the regulatory environment in the US and the growing institutional adoption of cryptocurrencies.
Meitu’s decision to sell its cryptocurrency holdings ahead of these price spikes highlights the challenges of predicting market movements and the importance of strategies aligned with business objectives. While some companies continue to invest in digital assets, others, like Meitu, are opting to redirect resources to areas with greater growth potential, such as artificial intelligence.
