In early March 2025, Meitu—the company behind the popular photo-editing app Meitu Xiu Xiu—made headlines by announcing a bold $40 million investment in Bitcoin (BTC) and Ethereum (ETH), equivalent to approximately RMB 260 million. The move sparked intense debate across social media and financial circles, raising questions about the company’s long-term vision, financial health, and strategic pivot toward blockchain technology.
This article explores Meitu’s cryptocurrency purchase, its broader business transformation, and what this means for investors and the evolving relationship between traditional companies and digital assets.
Meitu’s $260 Million Bet on Bitcoin and Ethereum
On March 7, 2025, Meitu Company Limited disclosed via a Hong Kong Stock Exchange filing that it had acquired 15,000 ETH and 379 BTC on the open market. The total cost was roughly $22.1 million for Ethereum and $17.9 million for Bitcoin, summing to $40 million. At the time of purchase, this translated to an average price of about **$1,473 per ETH and $47,200 per BTC**.
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Within days, both cryptocurrencies saw price appreciation. By press time, ETH was trading at $1,733 and BTC at $50,300—marking paper gains of 17.65% on ETH and 6.57% on BTC, amounting to a combined unrealized profit of over $5 million (RMB 33 million).
The investment was made under a board-approved plan allowing Meitu to allocate up to $100 million of its existing cash reserves—excluding IPO funds—into digital currencies. According to the company, the rationale includes:
- Diversifying cash holdings amid global monetary expansion.
- Hedging against fiat currency depreciation due to central bank liquidity policies.
- Signaling a strategic commitment to technological innovation, particularly blockchain adoption.
Meitu emphasized that this is not speculative trading but part of a long-term treasury management strategy aimed at preserving capital value in a low-interest, high-inflation macroeconomic environment.
Chairman Cai Wensheng: “Someone Has to Eat the First Crab”
Shortly after the announcement, Meitu’s chairman, Cai Wensheng, took to social media to defend the decision. “Someone has to eat the first crab,” he wrote, referring to being a pioneer in uncharted territory. He claimed Meitu might be the first Hong Kong-listed company to invest in Bitcoin and possibly the first globally to hold Ethereum as part of its corporate treasury.
While visionary to some, others dismissed the move as mere hype. Critics argued that buying crypto does not equate to genuine blockchain development. Skeptical netizens questioned whether purchasing tokens truly constitutes entering the blockchain space or if it's simply a short-term play to boost stock prices.
One common critique: “If you really believe in digital currency, build something instead of just buying coins.” Others mocked the idea, suggesting that leadership should focus on improving office conditions rather than making headline-grabbing investments.
There were also broader concerns about environmental impact and market speculation linked to cryptocurrency mining, especially GPU shortages affecting gamers and PC builders.
From Years of Losses to Strategic Diversification
Despite its iconic apps like Meitu Xiuxiu and Meipai, Meitu has struggled financially for years. Between 2013 and 2019, the company reported cumulative losses exceeding RMB 12.1 billion. Although it achieved adjusted net profitability in the first half of 2020 with RMB 24.94 million in earnings, its core advertising revenue declined by 12.1% during that period.
User metrics remain strong:
- Total monthly active users (MAUs): 295 million
- Meitu Xiuxiu MAUs: 121 million (+4.2% YoY)
- Average daily usage: 15.4 minutes
However, reliance on ads has decreased as non-ad revenue surged from 21.9% to 42.86% of total income in H1 2020. Key growth areas include:
- Premium subscriptions & in-app purchases: up 209.2% YoY
- Internet value-added services: +37.3%
- Other revenue (including e-commerce experiments): +126.2%
Meitu has been actively diversifying into beauty tech, medical aesthetics (aesthetics clinics), and live-streaming e-commerce, aiming to monetize its massive female user base more effectively.
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The crypto investment may be seen as another step in this transformation—one designed not only to hedge balance sheets but also to reposition Meitu as a forward-thinking tech innovator rather than just a legacy photo app.
A Growing Trend: Corporations Embracing Crypto
Meitu is not alone. Major global firms have begun integrating digital assets into their financial strategies:
- Tesla: Purchased $1.5 billion worth of Bitcoin in February 2025; realized significant gains though its stock later corrected.
- MicroStrategy: Holds over 91,000 BTC worth nearly $4.6 billion, with an average cost of $24,119 per coin—demonstrating strong conviction in BTC as a store of value.
These moves reflect growing institutional confidence in cryptocurrencies as legitimate components of corporate treasury management—especially amid concerns over inflation and currency devaluation.
Yet performance isn’t always aligned: Tesla’s stock dropped nearly 30% post-announcement, despite Bitcoin’s rise. Similarly, MicroStrategy’s share price fell more than 50% from peak levels.
This divergence highlights investor uncertainty—while digital assets may preserve value, market sentiment toward such strategies remains volatile.
The Great Bitcoin Debate: Innovation or Bubble?
The financial world remains deeply divided over Bitcoin’s role:
✅ Supporters argue:
- Bitcoin acts as “digital gold,” offering scarcity and inflation resistance.
- Ark Invest estimates BTC could reach multi-trillion-dollar market cap if adopted widely.
- Institutional adoption signals maturation of the asset class.
❌ Critics warn:
- It enables illicit activities and consumes excessive energy.
- ECB President Christine Lagarde calls it a “highly speculative asset” used for money laundering.
- Charlie Munger dismissed it as a “synthetic gold substitute” he wouldn’t touch.
U.S. Treasury Secretary Janet Yellen echoed concerns about efficiency and misuse: “It’s an extremely inefficient way to conduct transactions.”
Nonetheless, mainstream adoption continues—with payment giants like Mastercard now supporting crypto transactions.
Frequently Asked Questions (FAQ)
Q: Why did Meitu invest in cryptocurrency?
A: To diversify its cash reserves, hedge against fiat inflation, and signal its intent to embrace blockchain innovation as part of a long-term strategy.
Q: Is Meitu profiting from its crypto investment?
A: Yes—shortly after purchase, its holdings showed an unrealized gain of over $5 million due to rising prices of BTC and ETH.
Q: Does buying crypto mean Meitu is now a blockchain company?
A: Not necessarily. While it marks a strategic interest in digital assets, actual blockchain product development has not been disclosed yet.
Q: How does Meitu’s move compare to Tesla’s?
A: Both are corporate treasury plays using cash reserves. However, Tesla’s investment was ten times larger ($1.5 billion), while Meitu’s is proportionate given its smaller size.
Q: Are there risks involved in companies holding crypto?
A: Yes—price volatility can impact financial statements, regulatory scrutiny is increasing, and reputational risk exists if markets turn bearish.
Q: Can other companies follow suit?
A: Increasingly yes—especially those with strong cash positions seeking alternative stores of value amid macroeconomic uncertainty.
Final Thoughts: A Strategic Gamble or Short-Lived Hype?
Meitu’s cryptocurrency investment reflects a bold attempt to reinvent itself amid years of losses and shifting digital trends. Whether this marks a genuine pivot toward blockchain or merely a publicity stunt remains to be seen.
But one thing is clear: in an era where tech boundaries are blurring and financial systems evolving rapidly, even legacy consumer apps are exploring radical new paths.
As institutional adoption grows and digital assets gain legitimacy, corporate treasuries may increasingly include crypto allocations—not for speculation, but for resilience.
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Keywords: Meitu cryptocurrency investment, Bitcoin corporate adoption, Ethereum treasury holding, blockchain strategy 2025, digital asset diversification, crypto investment trends, corporate treasury management