Shifting Focus from Crypto to AI
Chinese software developer, Meitu, is preparing to divest its cryptocurrency holdings, marking a significant shift in its investment strategy. The move comes approximately two years after the company ventured into Bitcoin (BTC) and Ethereum (ETH).
Profit Boost from AI and Mobile Apps
Meitu’s recent financial success has predominantly emanated from the subscription model embedded within its mobile applications and the performance of AI-driven products. This shift towards AI and mobile apps has overshadowed the role of cryptocurrencies in the company’s portfolio.
Crypto Holdings at Crossroads
Regarding the cryptocurrency investments, Meitu has redirected its attention away from the crypto market. The company has expressed its intention to sell these digital assets “at the appropriate time.”
In the company’s own words, it is no longer fixated on cryptocurrencies and may part with them when the timing is right. This strategic pivot signifies Meitu’s evolving investment priorities.
A Glimpse into Meitu’s Crypto Journey
Meitu embarked on its cryptocurrency journey a few years ago when it invested approximately $40 million in Bitcoin and Ethereum in March 2021. Subsequently, the Hong Kong-listed firm expanded its crypto holdings to reach a total of $100 million.
In a regulatory filing, Meitu previously clarified that its cryptocurrency investments were an integral part of its diversification strategy. The company viewed Bitcoin as an effective hedge against fiat currency devaluation and a reliable store of value.
However, since 2021, Meitu has maintained a static position in the crypto market, refraining from making further acquisitions or sales.
The decision to divest its cryptocurrency holdings reflects the company’s commitment to adapt to evolving market dynamics and capitalize on the lucrative AI and mobile application sectors.