The cryptocurrency world witnessed a historic moment on December 5, as the price of one bitcoin surged past the $100,000 mark, setting a new all-time high. At the time of reporting, bitcoin was trading at approximately $102,900, signaling a powerful resurgence in market confidence and institutional interest.
Amid this bullish momentum, Meitu Company (01375.HK) made headlines by fully exiting its long-held crypto positions—cashing out all of its bitcoin and ether holdings for a substantial profit of $79.63 million USD (about ¥571 million RMB). This strategic move marks a full-circle journey from initial losses to one of the most successful corporate crypto investments in recent history.
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From Market Entry to Strategic Exit: Meitu’s Crypto Journey
Meitu first entered the cryptocurrency market in Q1 2021, announcing on March 5 that it had purchased 15,000 ether (ETH) and 379.12 bitcoin (BTC) for a combined total of $40 million**. Just days later, on March 17, the company doubled down, acquiring an additional **16,000 ETH** and **386 BTC**, spending another **$50 million.
By April 8, 2021, Meitu had invested nearly $100 million in digital assets through multiple public market purchases, positioning itself as one of the earliest Hong Kong-listed companies to treat cryptocurrencies as strategic treasury reserves.
However, the road wasn’t smooth. The sharp decline in crypto prices during 2022 and early 2023 led to significant paper losses. By the end of 2022, the fair value of Meitu’s holdings had dropped sharply—its ETH portfolio valued at around $37.3 million** and BTC at **$15.6 million, well below purchase prices. As a result, the company recorded impairment losses totaling over ¥284 million RMB, with approximately ¥86.6 million attributed to ETH and ¥198.2 million to BTC.
This period placed Meitu in what many described as a "deeply underwater" position—an early test of its long-term conviction in blockchain-based value storage.
The Turnaround: Recovery and Full Realization of Gains
Starting in 2023, the tide began to turn. With the broader crypto market rebounding due to macroeconomic shifts, growing institutional adoption, and anticipation around the Bitcoin halving event, Meitu’s holdings regained value.
According to its 2023 financial report, the fair value of its BTC and ETH rose to $39.91 million** and **$71.23 million, respectively. The company reversed prior impairment losses by about ¥270 million RMB, reflecting improved market conditions and renewed investor sentiment.
By February 2024, Meitu’s crypto portfolio had finally climbed above its original cost basis—setting the stage for a profitable exit.
On December 4, 2024, Meitu announced it had sold its entire crypto position—approximately 31,000 ETH and 940 BTC—for total cash proceeds of roughly $100 million (ETH sale)** and **$80 million (BTC sale). The net gain? A remarkable $79.63 million (¥571 million RMB) in realized profits.
Notably, this single transaction exceeded the combined net profits Meitu earned in both 2022 ($11 million)** and **2023 ($37 million).
Strategic Use of Proceeds: Shareholder Returns and Operational Flexibility
Unlike speculative traders, Meitu approached this windfall with clear strategic intent. The company plans to allocate 80% of the net proceeds toward a special dividend payout, directly rewarding shareholders for their patience and trust.
The remaining 20% will be used as general working capital, enhancing financial flexibility for future investments in AI, imaging technology, and digital ecosystem development—core areas aligned with its long-term vision.
This disciplined capital allocation underscores a maturing corporate strategy: leveraging volatility not for short-term speculation, but for long-term value creation.
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Broader Implications: Corporate Adoption of Cryptocurrency
Meitu’s journey reflects a growing trend among public companies embracing digital assets as part of treasury management—a movement pioneered globally by firms like MicroStrategy and Tesla.
Back in 2021, then-chairman Cai Wensheng framed the decision as a bold step into the future of finance. He stated that Meitu aimed to become a leader in blockchain integration, positioning BTC and ETH not just as investments but as strategic reserves supporting a broader blockchain roadmap.
Even earlier, in January 2018, Meitu released a blockchain whitepaper outlining plans for the Meitu Intelligent Passport (MIP)—a decentralized identity solution using facial recognition as a cryptographic key for KYC processes on a blockchain network. Though the project did not scale widely, it signaled early foresight into Web3 and self-sovereign identity trends.
Cai once famously remarked:
“Blockchain may be the biggest bubble in human history—but because it’s only just beginning, we must embrace the bubble. Not participating is the greatest risk.”
Other Players in the Game: Boyaa Interactive’s Position
While Meitu chose full divestment, other listed companies are taking different approaches.
Boyaa Interactive (00434.HK), another Hong Kong-listed firm, holds a substantial crypto portfolio:
- Approximately 3,183 BTC at an average cost of $57,700 per coin
- About 15,445 ETH acquired at an average price of $2,756
In late November 2024, Boyaa executed a major rebalancing—exchanging 14,200 ETH for roughly 515 BTC, indicating a strategic shift toward favoring bitcoin as "digital gold."
Given current prices near $103,000 per BTC, Boyaa now sits on massive unrealized gains—what the market calls “paper profits”—demonstrating how corporate treasuries are actively reshaping portfolios amid evolving market dynamics.
Frequently Asked Questions (FAQ)
Q: Why did Meitu decide to sell all its cryptocurrency holdings?
A: After holding through market downturns and achieving full recovery above cost basis, Meitu chose to lock in profits. The decision aligns with prudent financial management—realizing gains to return capital to shareholders and strengthen operational funds.
Q: Did Meitu make more from crypto than from its core business?
A: Yes—in this instance, the $79.63 million profit surpassed its combined net profits from 2022 and 2023. However, this was a one-time gain; Meitu continues to focus on sustainable growth in AI-powered imaging and beauty tech.
Q: Is corporate investment in crypto risky?
A: It carries volatility risks, especially in price swings. But with proper risk controls and long-term strategy—as seen with Meitu and others—it can offer diversification benefits and hedge against fiat inflation.
Q: What does Bitcoin breaking $100K mean for investors?
A: It reflects growing institutional confidence, limited supply (post-halving), and macroeconomic factors like monetary easing. While momentum is strong, investors should remain cautious about valuations and timing.
Q: Could other companies follow Meitu’s exit strategy?
A: Some may take profits after large runs; others like Boyaa Interactive may rebalance instead. Each company assesses risk tolerance, treasury goals, and strategic fit before acting.
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Final Thoughts: A New Chapter in Digital Asset Evolution
Meitu’s crypto saga—from early adoption and temporary losses to record-breaking gains and disciplined exit—offers valuable lessons for investors and corporations alike.
It highlights the importance of:
- Long-term vision
- Risk resilience
- Strategic capital allocation
As more companies explore digital assets as part of treasury strategies, Meitu stands as a case study in how bold innovation, tempered with financial discipline, can yield extraordinary outcomes—even in volatile markets.
With Bitcoin now above six figures and institutional adoption accelerating worldwide, the era of corporate crypto maturity may have only just begun.