In a strategic financial move timed with the recent surge in cryptocurrency prices, Meitu Inc., a Hong Kong-listed company, has fully liquidated its holdings of Bitcoin and Ethereum. The sale, completed in early December 2024, marks a significant milestone in the company’s investment journey and underscores a growing trend among public firms using digital assets as part of their treasury strategy.
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Full Liquidation at Market Peak
Meitu announced on December 4, 2024, that it had sold all of its previously acquired cryptocurrency assets. The portfolio included approximately 940 Bitcoin (BTC) and 31,000 Ethereum (ETH), which were fully offloaded in the open market. The total proceeds from the transaction reached nearly **$180 million**, with around $100 million attributed to Ethereum sales and $80 million to Bitcoin.
This represents a substantial profit compared to the company’s initial investment of roughly $100 million** made between March and April 2021. After accounting for acquisition costs and transaction fees, Meitu reported a net gain of **$79.63 million (approximately RMB 571 million) from the sale.
The announcement triggered positive market sentiment. On December 5, Meitu’s stock surged over 9% intraday, reflecting investor confidence in the company’s capital allocation decisions.
Strategic Investment and Long-Term Holding
Meitu first entered the crypto market in March 2021, purchasing 15,000 ETH and 379.12 BTC for a combined cost of about $40 million. At the time, the company stated that cryptocurrencies offered strong long-term appreciation potential and served as an effective tool for diversifying cash reserves beyond traditional fiat currencies.
Further purchases followed:
- On March 17, 2021: Acquired an additional 16,000 ETH ($28.4 million)** and **386.09 BTC ($21.6 million).
- On April 8, 2021: Bought another 175.68 BTC for $10 million through its subsidiary Meitu Hong Kong.
These transactions brought Meitu’s total crypto investment to approximately $100 million, aligning with its stated goal of embracing technological innovation and enhancing shareholder value through forward-looking financial strategies.
Weathering Market Volatility
Despite initial optimism, the bear market of 2022 dealt a heavy blow to Meitu’s unrealized gains. By December 31, 2022, the fair value of its crypto holdings had declined significantly:
- Ethereum: ~$37.3 million (vs. ~$50.5 million purchase cost)
- Bitcoin: ~$15.6 million (vs. ~$39.5 million purchase cost)
As a result, Meitu recorded impairment losses totaling approximately RMB 284.8 million — RMB 86.6 million on ETH and RMB 198.2 million on BTC.
Rather than panic-sell, the company maintained a long-term perspective and held onto its assets.
The turnaround came in 2023, as both Bitcoin and Ethereum prices rebounded strongly. By year-end:
- The fair value of ETH rose to ~$71.23 million
- BTC increased to ~$39.91 million
This recovery allowed Meitu to reverse prior impairment losses by about RMB 270 million, signaling improved financial health and reinforcing the resilience of its investment thesis.
Profit Distribution: Rewarding Shareholders
With the successful liquidation in late 2024, Meitu is now focused on returning value to shareholders. The board has decided to allocate approximately 80% of the net profit from the sale — around $63.7 million — toward a special cash dividend.
The proposed dividend amounts to roughly HKD 0.109 per share and is expected to be distributed in June or July 2025, subject to regulatory approvals and shareholder resolutions.
The remaining 20% of proceeds will be used as general working capital to support the expansion of Meitu’s core business: subscription-based image and design software products.
This strategic pivot reflects a renewed focus on sustainable growth through its flagship apps like MeituPic and Wink, which have seen rising adoption globally, particularly in Asia and emerging markets.
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Broader Market Context: Bitcoin Breaks $100K
Meitu’s timing coincides with a broader rally in the cryptocurrency market. In November 2024, Bitcoin surged past $99,660**, briefly pulling back to around $90,866 before regaining momentum. On December 5, BTC officially broke the $100,000 psychological barrier**, reaching a high of **$103,580** at press time.
Ethereum also saw strong performance, climbing to $3,892, driven by increased institutional interest, ETF speculation, and ongoing network upgrades.
Other publicly traded companies are also making headlines in the crypto space. For instance:
- Boya Interactive, another Hong Kong-listed firm, holds 2,641 BTC (total cost: $142 million; average cost: $54k/BTC) and 15,445 ETH (total cost: $42.6 million; average cost: $2,756/ETH).
- In late November 2024, Boya swapped 14,200 ETH for approximately 515 BTC, adjusting its portfolio toward Bitcoin amid bullish sentiment.
- Its total crypto holdings now stand at around 3,183 BTC, with an average cost of $57,700 per coin — positioning it for significant unrealized gains.
Following these developments, Boya’s share price jumped more than 18% on December 5.
Frequently Asked Questions (FAQ)
Q: Why did Meitu decide to sell all its cryptocurrency holdings?
A: Meitu capitalized on historically high market prices in late 2024 to realize profits after holding through volatility. The decision aligns with its strategy to strengthen core operations and reward shareholders via dividends.
Q: How much profit did Meitu make from selling Bitcoin and Ethereum?
A: The company earned approximately $79.63 million (RMB 571 million) in net gains from selling about 940 BTC and 31,000 ETH acquired since 2021.
Q: Will Meitu invest in cryptocurrency again in the future?
A: While not ruled out entirely, Meitu has emphasized a renewed focus on its core image and design software business. Future investments would depend on market conditions and strategic priorities.
Q: When will shareholders receive the special dividend?
A: Pending approvals, the special cash dividend — funded by 80% of the crypto sale profits — is expected to be paid in June or July 2025.
Q: How did crypto investments impact Meitu’s financial performance in previous years?
A: In 2022, declining prices led to impairment losses totaling RMB 284.8 million. However, price recoveries in 2023 allowed Meitu to reverse about RMB 270 million in losses before ultimately realizing full gains in 2024.
Q: Is it common for public companies to hold cryptocurrencies?
A: Yes — firms like MicroStrategy, Tesla, and now Asian-listed companies such as Meitu and Boya Interactive have adopted digital assets as part of treasury management strategies to hedge against inflation and diversify risk.
Meitu’s decision to exit its crypto position demonstrates a disciplined approach to investment — entering during early adoption phases, enduring short-term volatility, and exiting at peak valuation to benefit stakeholders directly.
As digital assets continue gaining institutional acceptance, more companies may explore similar strategies — using crypto not just as speculation but as a vehicle for long-term capital appreciation and shareholder returns.
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