Chinese software firm, Meitu, has recently announced a new cryptocurrency investment, just a few days after it first ventured into the crypto space.
Meitu stated on Wednesday that it has purchased a total of 16,000 ETH and 386.086 BTC valued at approximately $28.4 million and $21.6 million respectively.
Earlier this month, Meitu had indicated its intentions to allocate a part of its cash reserve to cryptocurrency investments. The company subsequently made an initial investment of $40 million in BTC and ETH.
Currently, Meitu has $50.5 million in ETH and $39.5 million in BTC, bringing its total cryptocurrency portfolio balance to $90 million.
The company noted that it made this cryptocurrency purchase through its wholly-owned subsidiary, Miracle Vision, adding that the transaction was conducted on the open market with cash.
Meitu added that the cryptocurrency purchases are a part of a board-approved investment plan to have up to $100 million worth of cryptocurrencies in its portfolio.
According to Meitu, the purchased crypto assets are currently kept in safe custody with “renowned” cryptocurrency trading platforms.
Crypto Adoption Goes Mainstream
Meitu noted that it had delved into crypto investments because of its potential as a hedge against inflation. The company acknowledged that fiat currency is fast losing value, a condition that is worsened by the unending money printing spree by global central banks.
Therefore, to prevent the catastrophic consequences of inflation, Meitu decided to follow in the footsteps of several large institutional investors, like MicroStrategy and Tesla, that have adopted cryptocurrencies.
“The Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.”
Like bullish MicroStrategy, Meitu is determined to continue investing in cryptocurrencies, especially the top two —BTC and ETH— as they are relatively better than fiat.
As interest in crypto-related investments continues to grow, the world’s largest crypto fund provider, Grayscale Investments, recently launched five new crypto trusts.
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This article is Originally posted on CoinCentral.com
Author: Obike Favour