Chinese firms now seem to be following American corporates so that they don’t miss out on the Bitcoin (BTC) train. In the latest development, China’s video and image processing software firm Meitu has announced its latest investment in Bitcoin (BTC) and Ethereum (ETH).
As per the Bloomberg report, on Sunday, March 7, Meitu announced $40 million in total – buying 379.1 Bitcoins for $17.9 million and 15,000 units of Ether for $22.1 million. Reportedly, this investment is just a fraction of the company’s plan to put $100 million of its cash reserves in cryptocurrencies as part of portfolio diversification.
However, as it appears that Meitu is the first Chinese firm to officially declare its Bitcoin (BTC) investment, Binance CEO Changpeng Zhao stated that many other Asian companies have already invested in Bitcoin.
But with strong regulatory measures and crypto bans in some part, not many are openly vocal about it, he hints.
I know many asian companies own #bitcoin already. They are just not very public about it.
— CZ ???? Binance (@cz_binance) March 7, 2021
No other public listed Asian firm has openly announced its intention to investing in Bitcoin (BTC) yet. Meitu chairman Cai Wensheng has been a long-term crypto enthusiast and has been exploring blockchain technology for some period.
Corporates Warming Up to Bitcoin (BTC) and Ethereum (ETH) Investments
American corporates have been eager to put their balance sheet on Bitcoin amid fears of rising inflation and USD currency devaluation. Top ten companies like Tesla have already announced $1.5 billion exposure to Bitcoin.
Now, with Meitu joining the bandwagon, it can possibly create a domino effect with other Asian and Chinese corporates joining soon. Meitu’s board of directors is positive that both these assets will outperform in the long-term. The official announcement reads:
“Notwithstanding the long-term prospects, cryptocurrency prices in general are still highly volatile and therefore the Board currently decided to invest in the two largest cryptocurrencies by market capitalization, Ether and Bitcoin, which the Board believes should enhance shareholder value in the long-term”.
Interestingly, the software app development company has also shown interest to participate in the blockchain revolution by launching Ethereum-based decentralized applications (DApps).
“The Group is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including but not limited to launching Ethereum-based dApps, as well as identifying suitable overseas blockchain-based projects for potential investments,” said Meitu.
After last week’s volatility, Bitcoin (BTC) is trading back again above $50,500 levels while the Ethereum (ETH) price has shot $1725 with strong whale accumulation.