Meitu's CEO, Wu Xinhong, recently reflected on the company's cryptocurrency investment decisions, stating that buying cryptocurrencies was viewed as an investment opportunity. He supported the decision as a board member and noted that the company sold all its cryptocurrency holdings at the end of last year, earning a profit of 570 million yuan, with 80% distributed as dividends to shareholders.
Key Points:
- Investment Decision: Meitu's cryptocurrency investment was part of a previously approved plan, allowing for up to $100 million in net purchases.
- Asset Allocation: The company acquired Ethereum as preparation to enter the blockchain industry and Bitcoin as part of its asset allocation strategy.
- Shift in Focus: Meitu has shifted its focus from digital assets to artificial intelligence (AI) business, driven by the changing global economic environment.
- Cryptocurrency Holdings: The company initially faced losses but reversed approximately 190 million yuan in impairment losses due to recent market recoveries ¹ ² ³.
Wu Xinhong also mentioned that, given the chance to reconsider, he would prefer to allocate funds towards teams that align with the company's core business, highlighting the challenges posed by cryptocurrency investments, such as stock price fluctuations tied to Bitcoin prices ¹.
