In early March, Meitu’s stock surged following a surprising corporate announcement: the company had purchased 15,000 units of Ethereum (ETH) and approximately 379.12 units of Bitcoin (BTC), spending around $22.1 million and $17.9 million respectively—totaling nearly $40 million in cryptocurrency acquisitions. This bold move reignited market speculation about Meitu’s future direction and whether blockchain technology could revive its fading momentum.
The purchases were made under a board-approved investment plan allowing Meitu to allocate up to $100 million in net cryptocurrency investments—defined as the total market value of crypto bought minus the value of any sold. The funding comes primarily from the company's existing cash reserves.
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A Strategic Bet or Market Hype?
Since late 2020, Bitcoin has climbed from around $10,000 to over $50,000, fueling a surge in blockchain-related stocks. Meitu capitalized on this trend earlier in 2021 when its share price tripled within weeks—from HK$1.5 to HK$4.5—riding the wave of investor enthusiasm for blockchain innovation.
This rally marked one of Meitu’s strongest performances in two years. However, since divesting its smartphone business in 2018, the company has struggled to find a sustainable revenue engine. Throughout 2020, its stock lingered near HK$1.5, reflecting weak investor confidence. Now, with its aggressive crypto purchases, Meitu appears to be betting big on blockchain as a potential turnaround strategy.
But is this a genuine long-term vision—or just another attempt to ride the hype?
Following Tesla’s Footsteps?
Meitu’s board framed the investment as both a financial hedge and a strategic signal. In their view, blockchain technology holds transformative potential comparable to mobile internet’s disruption of the PC era. They liken today’s blockchain landscape to the early days of mobile tech—around 2005—suggesting massive growth opportunities lie ahead.
By allocating part of its cash reserves to crypto, Meitu aims to mitigate risks associated with fiat currency devaluation due to expansive monetary policies worldwide. Moreover, the move signals the company’s commitment to technological innovation, positioning it for future expansion into blockchain-based services.
Echoing Tesla’s precedent—where Elon Musk’s company invested $1.5 billion in Bitcoin and announced plans to accept it as payment—Meitu describes its crypto buys as an asset diversification strategy. As of June 2020, Meitu held approximately $3.8 billion in cash and liquid assets, meaning it could afford even larger future investments if desired.
Yet Meitu’s ambitions extend beyond passive holding.
Beyond Bitcoin: Building a Blockchain Future
Unlike pure-play crypto investors, Meitu is exploring active integration of blockchain into its overseas operations. Specifically, the company is evaluating the feasibility of investing in decentralized applications (dApps) built on Ethereum—a key reason for acquiring ETH.
Many blockchain projects accept only ETH as payment for equity or participation, making it essential for any firm aiming to engage deeply with the ecosystem. Meitu also hinted at potentially launching its own dApp in the future, which would require Ethereum for smart contract execution and transaction processing.
This dual approach—holding BTC as a store of value while using ETH as a utility token—aligns with broader industry trends among tech-forward corporations looking to gain early-mover advantage in Web3.
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The Man Behind the Vision:蔡文胜 (Cai Wensheng)
While Meitu positions this move as corporate strategy, much of the driving force traces back to Chairman Cai Wensheng—a prominent figure in China’s internet and cryptocurrency circles.
Cai first entered the blockchain spotlight in January 2018 with the release of Meitu’s blockchain whitepaper. It proposed a decentralized identity solution called the Meitu Intelligent Passport (MIP), designed to bridge digital and real-world identities securely.
Shortly after, a cryptocurrency named “BEC” (Beauty Chain) emerged, quickly skyrocketing in value before collapsing—wiping out investor funds. Though Meitu and Cai denied direct involvement, public perception linked them closely to the project, earning Cai criticism and accusations of “pump-and-dump” behavior.
Despite the controversy, Cai remains a major player in the crypto space, with personal investments in leading platforms like OKEx—further cementing his reputation as a crypto influencer.
Internally, sources suggest that while the 2018 blockchain initiatives saw little tangible progress, Cai’s influence on Meitu’s strategic shifts has been profound.
Steering the Ship: From Phones to Blockchain
Historically, Meitu’s CEO Wu Xinhong managed day-to-day operations, while Cai maintained a hands-off role as chairman. That changed in August 2018, when Cai unexpectedly took a more active role during a strategic meeting—prompting a series of major business overhauls.
Later that year, Meitu sold off its smartphone division—the then-most profitable arm of the business—sparking internal resistance. Insiders revealed that many employees couldn’t understand abandoning a core revenue stream amid tough market conditions.
However, Cai pushed forward, viewing smartphones as a legacy product line. His vision shifted toward high-growth digital sectors like AI and blockchain—areas he believed could redefine Meitu’s future.
Founded in 2008 with Cai as an early investor, Meitu went public in Hong Kong in 2016 after raising nearly $500 million across five funding rounds under Cai’s leadership. At IPO, he boldly predicted Meitu could replicate Tencent’s meteoric rise, urging investors not to “miss the next big thing.”
Today, that promise remains unfulfilled. The stock trades over 70% below its IPO price, and user growth has stalled. According to its 2020 mid-year report, Meitu had 295 million monthly active users (MAUs), with only 5.62 million on Meipai—the video platform once seen as a TikTok competitor.
Frequently Asked Questions
Q: Why did Meitu buy both Bitcoin and Ethereum?
A: Bitcoin is viewed as a long-term store of value (digital gold), while Ethereum serves as a functional asset for interacting with decentralized apps and smart contracts—aligning with Meitu’s dual strategy of investment and future tech integration.
Q: Is Meitu the first company to invest in Ethereum?
A: No. While Meitu claims to be the first global listed company to hold ETH as reserve currency, other firms have previously invested in Ethereum-based projects or held ETH through subsidiaries.
Q: Did Meitu create the BEC token?
A: Officially, no. Meitu and Cai Wensheng have denied creating or endorsing Beauty Chain (BEC). However, timing and associations led many to believe there was a connection.
Q: How does this affect Meitu’s core business?
A: Currently, minimal impact. The crypto purchases are investments. Any real effect depends on future integration of blockchain into products like photo editing tools or social platforms.
Q: Could this be just a short-term stock play?
A: Some analysts suspect short-term market manipulation. However, stated intentions suggest longer-term positioning in blockchain infrastructure and digital asset adoption.
Q: What are the risks of Meitu’s crypto strategy?
A: Volatility is the biggest risk. A sharp drop in BTC or ETH prices could erode shareholder value. Regulatory uncertainty in China and globally also poses challenges for sustained crypto holdings.
Final Outlook: Can Blockchain Rescue Meitu?
Meitu’s $40 million crypto foray reflects more than financial diversification—it’s a symbolic pivot toward reinvention. With declining user growth and no clear post-phone business model, blockchain offers a narrative of innovation and future readiness.
Core keywords naturally integrated throughout: Meitu, blockchain, Bitcoin, Ethereum, crypto investment, digital assets, decentralized applications, Cai Wensheng.
While parallels with Tesla offer legitimacy, success hinges on execution beyond headlines. Will Meitu build meaningful blockchain products—or remain a speculative story?
Only time will tell if this gamble revitalizes Meitu—or becomes another chapter in its struggle to stay relevant in a fast-evolving tech landscape.