HONG KONG, Dec 5 – Xiamen-based Meitu Inc, known for its photo-editing apps, has reportedly sold all its cryptocurrency holdings, gaining nearly US$80 million ahead of a significant surge in bitcoin prices.
South China Morning Post (SCMP) reported the Hong Kong-listed company saying yesterday that it had disposed of 940 units of bitcoin and 31,000 units of ether from cryptocurrency Ethereum, netting US$79.63 million (RM356 million) from the sale.
Meitu said it will use 80 per cent of the gains to pay shareholders a special dividend in mid-2024, with the remaining proceeds would be allocated as working capital.
It also said that its focus is now on developing its core photo, video, and design product, citing a recent emphasis on artificial intelligence as a driver of its success.
Meitu had invested nearly US$100 million in bitcoin and ether in early 2021 but began reducing its holdings last month, selling all its crypto assets for nearly US$180 million.
The decision to liquidate came amid a surge in cryptocurrency prices, boosted by former United States president Donald Trump’s re-election and his promises of crypto-friendly policies.
Bitcoin has climbed more than 130 per cent this year, surpassing US$100,000 for the first time today after Trump appointed Paul Atkins, a digital-asset proponent, to lead the Securities and Exchange Commission.
SCMP reported that Meitu shares were up 3.15 per cent this morning to HK$2.95 (RM1.69) per unit, 65 per cent lower than its listing price in 2016.
