December 5, 2024 — Bitcoin achieved a historic milestone as its price surged past $100,000 per coin, setting a new all-time high. At press time, Bitcoin traded at approximately $102,900.
Amid this rally, early investors like Meitu Inc. (HKEX: 01375) began exiting their positions. On December 4, the company announced it had sold its entire cryptocurrency holdings—31,000 Ethereum (ETH) and 940 Bitcoin (BTC)—netting $180 million in total proceeds. The sale generated a profit of $79.63 million (~¥571 million).
From Losses to Profits
Meitu first ventured into cryptocurrency investments in Q1 2021, purchasing:
- 15,000 ETH and 379 BTC for $40 million (March 5).
- An additional 16,000 ETH and 386 BTC for $50 million (March 17).
- 175 BTC for $10 million (April 8).
By 2022, plummeting crypto prices led to significant impairment losses:
- ¥86.6 million ($12.4M) on ETH.
- ¥198.2 million ($28.4M) on BTC.
The tide turned in 2023 as markets recovered. Meitu reversed ¥270 million ($38.7M) in impairments, and by February 2024, its holdings finally exceeded cost basis.
Key Financial Impact
- 2022–2023 Net Profit: ¥480 million ($68.8M) combined.
- 2024 Crypto Profit: ¥571 million ($81.8M) — surpassing prior two years’ earnings.
Meitu plans to allocate 80% of proceeds to shareholder dividends, with the remainder as operational capital.
Other Market Players
Booyaa Interactive (HKEX: 00434)
- Holdings: 3,183 BTC (~$318M at $100K/BTC) + 15,445 ETH (~$46M at $3K/ETH).
- Strategy: Swapped 14,200 ETH for 515 BTC in November 2024, averaging $57,700 per BTC.
Industry Perspectives
Meitu’s former Chairman, Cai Wensheng, defended the 2021 investment as a "strategic reserve" for blockchain development. He likened early crypto adoption to "being the first to eat crab"—risky but pioneering.
FAQ
Q: Why did Meitu sell its crypto holdings?
A: To capitalize on record-high prices and secure profits for dividends.
Q: How does Booyaa’s strategy differ from Meitu’s?
A: Booyaa rebalanced its portfolio (ETH→BTC) rather than exiting entirely.
Q: What’s next for corporate crypto investments?
A: While volatility remains, institutional interest grows as blockchain matures.