Chinese tech giant Meitu is exploring the possibility of selling its substantial Bitcoin and Ethereum holdings, valued at $100 million, which were acquired during the 2021 cryptocurrency bull market. While there is no concrete plan in place for disposing of these assets, the company is evaluating the option to divest from the crypto market. This decision follows the recent market dynamics and the crypto market's unpredictability, which have prompted Meitu to shift its investment focus.
Meitu, known for its selfie-editing app, initially invested heavily in the crypto market during the 2021 bull market, accumulating 31,000 units of Ether and approximately 765 units of Bitcoin. Unfortunately, the value of these assets subsequently declined, resulting in substantial losses. However, the recent resurgence in the crypto market has allowed Meitu to recoup some of its previous losses. The company's decision to consider moving away from crypto investments is a response to the evolving market conditions.
Kang Yicong, Meitu's Senior Investor Relations Manager, clarified that the initial crypto purchases were part of a strategic decision, and the company has not made any further investments in this space. While Meitu is open to selling its crypto holdings when the timing is right, it currently lacks a specific disposal plan. The company is shifting its focus away from crypto investments as it looks toward other promising opportunities.
Meitu's future plans involve targeting international markets, particularly in regions such as Southeast Asia, Japan, South Korea, and Europe. The company aims to adapt and repackage its successful products from the Chinese market for international expansion. The emphasis is on its AI-based art and drawing functions, which are expected to contribute significantly to the company's profits in the coming years.
The news of Meitu's contemplation of selling its crypto assets can have ripple effects on the Forex market. Forex traders who closely monitor cryptocurrency movements may need to adjust their trading strategies based on Meitu's decision. Changes in the crypto market could influence the Forex market as well, as they are interconnected. Forex traders should remain vigilant and adapt their strategies to account for potential market shifts arising from developments like Meitu's decision.