Meitu Announces Strategic Shift to Core Business After Cryptocurrency Windfall
Hong Kong-based Meitu Inc. (HKEX: 01357) disclosed on December 4, 2024, that it had liquidated its entire cryptocurrency holdings—31,000 Ethereum (ETH) and 940 Bitcoin (BTC)—yielding a total profit of $79.63 million (~¥571 million)**. The sale coincided with Bitcoin’s historic rise to **$100,000 per coin, marking a milestone for the digital asset market.
Key Details of Meitu’s Cryptocurrency Exit
- Timing: Sales began in November 2024 and concluded by December 4.
Profit Allocation:
- 80% ($63.7 million) designated for **special dividends** (HK$0.109 per share).
- 20% retained as operational capital.
- Market Reaction: Meitu’s shares surged 9.1% intraday following the announcement.
Strategic Pivot to Core Business
Meitu stated the divestment aligns with its renewed focus on core technology and imaging products, stepping back from volatile crypto investments. This move mirrors broader corporate trends toward stabilizing revenue streams amid cryptocurrency market fluctuations.
Bitcoin’s Rally to $100,000
The sell-off preceded Bitcoin’s breach of the $100,000 psychological barrier, fueled by:
- Institutional adoption of BTC spot ETFs.
- Macroeconomic factors like inflation hedging.
- Regulatory clarity in major markets.
Analysts note that Bitcoin’s 200%+ annual gain in 2024 outpaced traditional assets, drawing both retail and institutional investors.
FAQ: Meitu’s Cryptocurrency Strategy
Q: Why did Meitu sell its crypto holdings?
A: To capitalize on peak market valuations and redirect resources toward stable, long-term business growth.
Q: How does this impact shareholders?
A: Shareholders benefit via a special dividend payout, enhancing short-term returns.
Q: Will Meitu re-enter the crypto market?
A: Unlikely—the company emphasized a strategic shift away from speculative assets.
Industry Implications
Meitu’s exit underscores a cautious approach by publicly traded firms toward cryptocurrencies, despite bullish market conditions. Other companies may follow suit, prioritizing profit-taking over long-term crypto exposure.
👉 Explore Bitcoin investment strategies for institutional-grade insights.
Note: All financial data reflects December 2024 valuations.
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