Meitu, the Hong Kong-listed company widely recognized for its ventures into cryptocurrencies, has made a strategic shift away from digital assets like Bitcoin and Ethereum. The company, which garnered attention earlier this year for investing approximately $100 million in cryptocurrencies, has now revealed that its primary focus lies in its artificial intelligence (AI) business.
According to Kang Yicong, Meitu’s senior investor relations manager, the company has now moved away from buying and holding digital assets and may consider selling them in the future. This decision stems from the changing global economic environment, which has prompted numerous companies to rethink their spending habits. However, this shift has created an opportunity for Meitu to thrive in the market with its AI-driven products.
One of the key factors contributing to Meitu’s turnaround from losses to profitability is its subscription system, which has shielded its earnings from the volatile macroeconomic landscape. Additionally, the company’s AI business has played a significant role in attracting new subscribers and driving profits.
Meitu’s current strategic focus centers around video production, complementing its venture into AI. In October 2023, the company introduced MiracleVision 3.0, an enterprise AI vision solution that taps into the global AI frenzy fueled by technologies like ChatGPT. Kang Yicong emphasized the pivotal role AI is expected to play in Meitu’s development, particularly in expanding its subscription base and contributing to profits.
Meitu’s experience in the cryptocurrency market involved a substantial investment that initially incurred losses. However, recent market recoveries have allowed the company to reverse nearly 190 million yuan in impairment losses associated with its cryptocurrency holdings. Kang Yicong clarified that Meitu ceased purchasing cryptocurrencies after 2021, highlighting the strategic nature of this decision.
Regarding future prospects, Kang Yicong expressed optimism about Meitu’s presence in the overseas market, driven by the growing demand for the company’s AI-powered painting and other functions. Meitu intends to design and launch products with a global perspective, initially targeting Southeast Asia, Japan, South Korea, Europe, and the United States. The company will adapt its local development strategies to cater to the unique conditions and demands of each region.
In conclusion, Meitu’s strategic shift away from Bitcoin and Ethereum investments towards focusing on AI growth highlights its commitment to adapt to changing market dynamics. With its subscription system and AI business driving profitability, the company is set to leverage its expertise in the global market, tapping into the increasing demand for AI-powered solutions.
