The Asian markets seem to be going through some problems with cryptocurrencies. Mainly, the local governments are taking their time in regulating the use of cryptocurrency in their territory. For the most part, Asian markets like India, Thailand, and others have not been very optimistic about crypto trading or crypto investment.
However, the news of Meitu, a Chinese public listed company, investing in multiple cryptocurrencies has piqued crypto enthusiasts’ interest. Meitu is a social media image processing company that has invested $ 40 million dollars’ worth of cash reserves in Bitcoin and Ethereum.
Ethereum Versus Bitcoin Popularity in China
In an official statement, Meitu executives briefed the media about its “Crypto currency investment Plan,” passed by the company board of directors. It should be noted that the company is well-versed with digital trading practices given its nature of business and has a market cap of $ 40 million dollars.
Thus far, Meitu investment records show the purchase of Ethereum worth $22.1 million and 379.1214267 BTC for $17.9 million. These statistics clearly indicate that the company has dominantly invested in Ethereum. Ethereum has been the most dominant digital currency of interest in China for a long time.
Many financial experts have pointed at the possible surge or bullish trend for Ethereum in the near future. Meitu is, however, the first public listed company in China to dip its fingers into the cryptocurrency investment pool. The company generates an annual income of approximately $107 million.
Crypto Investment for Cash Depreciation Counter
Meitu ‘Crypto currency Investment Plans’ projects a comprehensive investment plan of its cash reserves in the near future. The current investment by Meitu is priced at $ 40 million. However, given the value of its market cap and revenue stream, it is possible that the company makes additional crypto purchases worth up to $ 60 million.
The company’s move is to insure itself against the depreciation of money caused by central banks’ money supply schemes. This strategy may also save the public listed company from the decline in the value of holding cash in the future. The board of directors has decided to invest in the crypto market based on their estimation of value appreciation and bullish trends in the crypto arena.