"Asian MicroStrategy" Meitu Sells Entire Crypto Portfolio Ahead of Bitcoin’s $100,000 Milestone

Meitu’s Bold Crypto Exit Nets $80 Million Just Ahead of Bitcoin’s Surge

Meitu, the Chinese selfie app operator, has made a major move in the cryptocurrency market, selling off its entire crypto portfolio just before bitcoin’s dramatic surge above the $100,000 mark.

The Hong Kong-listed company cashed out nearly $80 million from its holdings in bitcoin and ether as it exited the market in early December.

A Strategic Sell-off Just Ahead of Bitcoin's Record Rise

As of 4 December 2024, Meitu revealed it had fully sold its holdings of 940 bitcoin and 31,000 ether, making a total profit of $79.63 million.

This sale comes at a time when bitcoin has been surging, driven by investor optimism linked to political developments, including the re-election of former US president Donald Trump.

In the months leading up to the sale, Meitu had been gradually reducing its exposure to the volatile crypto market, with the final transaction taking place at a combined value of around $180 million.

A Rocky Journey Through Cryptocurrency

Meitu’s cryptocurrency journey has not been without challenges.

The company first ventured into digital assets in 2021, spending nearly $100 million on bitcoin and ether during March and April of that year.

However, the crypto market has been notoriously volatile.

By mid-2022, Meitu had warned investors that losses could balloon by as much as 154% due to market instability, worsened by scandals in the sector.

Focus Shifts Back to Core Business as Crypto Exit Solidifies Profits

Despite the ups and downs in crypto, Meitu has come out ahead with its exit.

The company plans to distribute 80% of the gains from its crypto holdings as a special dividend to shareholders, expected to be paid in cash in June or July 2025.

The remaining funds will be used to support Meitu’s core business as it pivots back to its photo, video, and design apps.

AI Push Gives Meitu a New Lease of Life

Meitu has faced difficulties in turning its selfie app into a highly profitable platform.

Previous attempts to monetise its apps, such as creating a smartphone for selfie enthusiasts and expanding into social media, failed to deliver.

However, its recent push into artificial intelligence (AI) has significantly improved its performance.

In March 2024, the company reported a remarkable 233% year-on-year increase in profits, thanks to the success of its AI-enhanced photo and video editing tools.

Meitu's Stock Sees Modest Growth Amid Crypto Success

Following the news of its crypto exit, Meitu’s shares saw a modest 3.15% increase, trading at HK$2.95 (about 40 US cents) on 5 December 2024.

Despite this uptick, the company’s stock price remains 65% lower than its listing price in 2016.

Meitu’s crypto exit, timed perfectly with bitcoin’s surge, has allowed the company to bolster its financial position while refocusing on its core business and AI initiatives.