Chinese tech giant Meitu is considering selling millions of dollars worth of Bitcoin and Ethereum assets, according to recent news. This decision comes after the company made significant investments in the crypto market during the 2021 bull run, only to experience losses as the value of these assets dropped. However, with the recent resurgence of the crypto market, Meitu has managed to recover some of its previous losses.
Meitu, known for its popular selfie editing app, initially invested in crypto assets as part of a strategic move. The company purchased a total of 31,000 Ether and around 765 Bitcoin, which had a combined value of $100 million during that period. However, the unpredictable nature of the crypto market and changing market dynamics have led Meitu to evaluate an exit from this sector.
Kang Yicong, the Senior Manager of Investor Relations at Meitu, stated that while the company doesn’t have specific plans for divestment at the moment, they are open to selling their crypto assets when the time is right. Yicong emphasized that Meitu’s focus moving forward lies in international markets, particularly in Southeast Asia, Japan, South Korea, and Europe. The company plans to repackage successful products from the Chinese market for expansion abroad.
While the segments related to artificial intelligence are expected to contribute significantly to Meitu’s profits, Yicong emphasized that crypto investments are no longer the company’s central focus. This indicates a shift in Meitu’s strategy as they concentrate on the potential of AI-based art and drawing functions in international markets.
It is clear that Meitu’s consideration of selling its Bitcoin and Ethereum assets is a response to the changing landscape of the crypto market and the need to mitigate potential risks. By diversifying their focus and exploring opportunities in different regions, Meitu aims to ensure long-term growth and profitability.
Overall, Meitu’s decision to evaluate an exit from the crypto market and reorient their focus towards international expansion reflects the company’s strategic approach to adapt to evolving market conditions. With an eye on AI-based art and drawing functions, Meitu hopes to capitalize on the rising demand in international markets, ensuring a successful future as a software development company.