Hong Kong tech firm Meitu has taken the entire worth of its cryptocurrency holdings to roughly $100 million after the agency disclosed the acquisition of a further $10 million value of Bitcoin (BTC) on Thursday.
Meitu HK, the wholly-owned Hong Kong subsidiary of Meitu Inc (integrated within the Cayman Islands), acquired 175.67798279 models of Bitcoin for a mixed value of $10 million, implying a purchase order value of round $57,000 per coin. The acquisition was reportedly made utilizing current money reserves, based mostly on spot costs on the open market.
Final month, Meitu racked up $90 million worth of cryptocurrency purchases break up between Bitcoin and Ether (ETH). Following Thursday’s newest acquisition, the agency has now bought $49.5 million value of BTC and $50.5 million value of ETH.
The agency beforehand said that it couldn’t have made its prior purchases with out the assistance of United States-based cryptocurrency trade Coinbase. No point out of Coinbase was made within the newest disclosure, nevertheless, the trade has been answerable for dealing with the investments of different company entities, reminiscent of MicroStrategy, previously.
The disclosure laid out the agency’s causes for including to its Bitcoin holdings, evaluating the know-how’s potential affect to that of the cell web:
“The Board takes the view that blockchain know-how has the potential to disrupt each current monetary and know-how industries, just like the style during which cell web has disrupted the PC web and lots of different offline industries.”
The disclosure notes Bitcoin’s utility as a retailer of worth, a characteristic helped by its restricted provide. Additionally talked about are its portability and its place as a hedge in opposition to inflation attributable to the aggressive cash printing practices of central banks.
“A few of these options doubtlessly even render Bitcoin as a superior type to different different shops of worth reminiscent of gold, treasured stone and actual property. Being an alternate retailer of worth, its value is primarily a operate of future demand that’s pushed by consensus of buyers and most of the people,” states the disclosure assertion.
Publicly listed corporations in China tread on uneven waters when making cryptocurrency investments. China acknowledges cryptocurrencies as commodities however not as usable currencies. Their commerce with fiat cash is prohibited, however attributable to their commodity standing, some have prompt cryptocurrencies may nonetheless be traded with one another in the identical method as different commodities in what stays a hazy situation within the far East.