Tech giant Meitu reported that it lost more than $43 million in crypto investments in the bear market.
Hong Kong tech giant made headlines with cryptocurrency investments
Meitu was one of many public companies that bought Bitcoin to hold as a treasure reserve during the height of the bull run last year. The Hong Kong tech giant made headlines in 2021 after it reported receiving nearly $100 million in crypto. However, with the onset of the bear market, the tech firm lost almost half of the value of its cryptocurrencies.
According to a local media report, Meitu lost 300 million yuan in cryptocurrency investments. The company reported a loss of over $43.4 million amid current sales. The tech giant says that crypto assets could affect the company’s net loss by the end of the first half of the year.
Meitu owned these two cryptocurrencies
In an exchange application in July, Meitu reported that Bitcoin (BTC) and Ethereum (ETH) are available. These 2 cryptocurrencies respectively
reported that there are approximately 940 Bitcoin (BTC) and 31,000 Ethereum (ETH) purchased for $49.5 million and $50.5 million, respectively. The company’s net crypto investment is approximately $100 million. The firm lost about half of its investment at the end of the second quarter of 2022 due to the current downturn in the crypto market.
Meitu is not the only company to suffer significant losses in cryptocurrency investments
MicroStrategy, the flag carrier of publicly traded companies investing in Bitcoin, reported that as of the second quarter of 2022, over $900 million in BTC assets were devalued.
At the height of the crypto bull run last year, MicroStrategy led by Michael Saylor popularized the use of BTC as a treasury reserve that replaced a portion of the US dollar. The idea has gained a lot of traction as BTC hits all-time highs every month and companies like Tesla, SpaceX, and more than a dozen publicly traded companies join the bandwagon. However, Bitcoin’s price has dropped over 70% from its peak and is currently trading at one-third of its all-time high.
