Shares in the Hong Kong-based app maker Meitu surged as markets opened in Asia by over 14%, before correcting slightly, after news that the company had made a USD 40m investment in bitcoin (BTC) and ethereuem (ETH) – a first known investment for major companies in the region.
Per market data, the Hong Kong Stock Exchange-listed firm opened trading high, and peaked at about 9:30 AM local time before correcting to levels below Friday’s close-of-market prices.
Yesterday, the company issued an official release stating that on March 5 it had bought an aggregate consideration of “approximately USD 22.1m and USD 17.9m respectively” in ETH and BTC (ETH 15,000 and just under BTC 380).
Sina reported that the Meitu CEO Cai Wensheng has justified his company’s move in a social media post, claiming that it was made in line with the firm’s own blockchain-related business plans – wording that may yet spike the ire of Chinese policymakers, who have been pushing the line that crypto and blockchain are not necessarily interconnected.
Cai referenced a Chinese proverb about a general who, rather than starve, plucked up the courage to become the first person ever to eat a fearsome-looking crab – a hint, perhaps, that Cai believes other companies in the region may soon follow suit.
And in a bullish statement, the company hinted it could make further moves in the future, claiming in the official announcement that its board had signaled its agreement on the move.
Meitu wrote,
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