A listed company accurately escapes at the peak and throws out money, veteran investors in the crypto space are clapping their thighs!
Plain explanation of Meitu's liquidation:
Is the signal a bit cold?
At the end of last year, when Bitcoin soared to 100,000, Meitu sold off all their coins (cost 52,000, selling price 106,000), making a blood profit of 570 million RMB! What's even harsher is that they directly distributed 80% of the dividends to shareholders (about 456 million). This move is like shouting with a loudspeaker: I’m out, cashing in for safety! Do you think the market is panicking? After the announcement, Bitcoin briefly fell below 90,000, and short-term sentiment is definitely under pressure!
Can they really crash the market? Don't panic!
Looking closely, Meitu's coins (940 Bitcoins + 31,000 Ethereums) are just a drop in the bucket compared to the hundreds of thousands of Bitcoins held by institutional giants! The actual selling pressure is limited. But Standard Chartered Bank has reminded us: if Bitcoin really falls below 90,000 (22% lower than the average cost of institutions), some may not be able to hold on and will follow the trend to cut losses, and that scene would be ugly...
Institutions are also divided into fleeing parties and faith parties!
Meitu represents the fleeing party: CEO Wu Xinhong has said that he regrets purely trading coins, it's better to invest in blockchain teams related to their main business (photo editing). The stock price is held hostage by the coin price, and the policy risks are high, it’s exhausting! They have withdrawn and are focusing on AI photo editing now. (Case in point: Meitu's AI subscription revenue increased by 57% last year, so they really want to transform)
MicroStrategy represents the faith party: tough and few words! Just when Meitu was fleeing, they bet 96,000 again and put 15,400 Bitcoins in! Now the total holding is close to 400,000! Their CEO Saylor firmly believes that Bitcoin is digital gold, buying more as it falls, really tough!
Meitu's victory escape + tycoon-style dividends, what do you think? Is it a signal light for smart money to retreat, or just an inconsequential interlude? If the 'death line' of 90,000 for Bitcoin is broken, will it trigger a stampede from institutions? Let's chat about it in the comments!
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