Chinese technology company Meitu is considering divesting its substantial cryptocurrency holdings worth around $100 million, according to recent statements by the company’s Senior Investor Relations Manager, Kang Yicong.
Meitu, best known for its popular selfie-editing app, had invested heavily in cryptocurrencies like Bitcoin and Ethereum during the height of the 2021 bull market. In total, the company acquired 31,000 units of Ether and 765 units of Bitcoin. However, as crypto prices plunged over the past year, these assets lost significant value.
While the recent recovery of the crypto market helped Meitu recoup some losses, the company now looks to move away from its risky cryptocurrency investments altogether. According to Yicong, Meitu made the crypto purchases as part of a past strategy and has not invested further in the space since.
Meitu now plans to focus its efforts on the international expansion of its AI-powered art and drawing features, which are gaining popularity abroad. While crypto was previously a central focus, driving profits through AI products is now the priority.
The company aims to repackage its successful Chinese offerings for Southeast Asia, Japan, South Korea, Europe, and other foreign markets. If the crypto market creates favorable exit opportunities, Meitu may sell its Bitcoin and Ethereum stash valued at around $100 million. But the company currently lacks a specific timeline or disposal plan.
Meitu’s shift away from crypto investments comes as the unpredictable nature of the crypto market has led the tech giant to re-evaluate its strategic priorities. With an eye on overseas expansion through AI, the company seems ready to relinquish its hefty crypto bets from 2021.
