One of the most popular selfie apps in China, called Meitu, has poured some $40 million worth of cryptocurrency, and its board has approved the purchase of up to $100 million in total.
Out of this, some $18 million has been invested in Bitcoin, and more than 22 million worth of Ethereum.
Both currencies rose early Monday, but the gains soon reversed.
Meitu shares surged after this cryptocurrency investment, rising by as much as 14.45% on Monday morning after the company confirmed this development.
The tech firm is known for its photo-editing application, which means “beautiful pictures” in Chinese. It has no less than 300 million monthly active users according to its most recent financial report, making it one of the most popular image editing apps around.
Meitu lets users make their eyes look wider, skin lighter, and face slimmer.
In a filing to the Hong Kong stock exchange, the company said that cryptocurrencies have ample room for appreciation in value. Buying crypto helps the firm diversify its cash holdings, and shows that the company wants to embrace technological evolution.
Hence, its foray into the blockchain industry.
The firm said that the purchase was partly for investment, and partly as preparation to entire the world of blockchain. It would finance it from its existing reserves, and the company is currently evaluating the feasibility of integrating blockchain technologies into its overseas business.
Ethereum, in particular.
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