As Bitcoin's price surged past the $100,000 milestone, the cryptocurrency market reignited with frenzied speculation. In a surprising move, Meitu—a Hong Kong-listed company formerly holding substantial crypto assets—chose to exit entirely, liquidating its Bitcoin and Ethereum holdings for a nearly $90 million profit. The decision sent Meitu's shares soaring by 9% during trading hours.
1. Ending the Crypto Venture
Meitu, primarily known for its image-editing software, began investing in cryptocurrencies in 2021 amid a bullish market. The company allocated ~$100 million to acquire 31,000 Ethereum (ETH) and 940 Bitcoin (BTC). At the time, then-Chairman Cai Wensheng publicly framed the purchases as a "long-term blockchain strategy," positioning Meitu as a pioneer among publicly traded companies holding crypto reserves.
The subsequent years saw extreme volatility. A 2022 market downturn forced Meitu to report significant impairment losses, straining its finances. However, 2024's price recovery reversed those losses, culminating in Meitu's strategic exit. The company sold its entire crypto portfolio for ~$180 million, netting $79.63 million in profit (≈¥571 million)—exceeding its combined 2022–2023 net profits.
Key Takeaways:
- ROI: 90% return on crypto investments (86% BTC, 92.5% ETH gains).
- Capital Allocation: 80% of proceeds will fund a special dividend; remainder supports subscription-based imaging products.
- Market Timing: The sale locked in profits before potential volatility triggered by institutional exits.
👉 How major crypto holders impact market trends
2. Industry Reactions and Strategic Insights
Hong Kong-listed crypto stocks rallied post-announcement, with Boyaa Interactive (+22%) and LKCO (+7.7%) gaining notably. LKCO Chairman Wang Feng speculated on Meitu's rationale via social media:
"Two possibilities: either preset sell orders triggered at $100K, or year-end financial auditing pressured the decision. Our strategy adapts to market shifts—we won't liquidate abruptly."
Comparative Crypto Holdings (2024):
| Company | Bitcoin (BTC) | Ethereum (ETH) | Total Investment |
|---|---|---|---|
| Meitu | 940 (sold) | 31,000 (sold) | $100M |
| Boyaa Interactive | 2,641 | 15,445 | $142M |
| LKCO | 142.85 | 848.38 | $8.8M |
Boyaa recently converted 14,200 ETH into 515 BTC, signaling continued accumulation despite market highs.
3. Market Implications and Analyst Warnings
Meitu's exit sparks debate about crypto's sustainability at peak valuations. Analysts warn of:
- Domino Effect: Institutional sell-offs could trigger price corrections.
- Political Influence: Peter Schiff criticizes Bitcoin's rally as "policy-driven artifice," citing lobbying impacts.
👉 Understanding crypto market cycles
FAQ Section
Q: Why did Meitu sell its cryptocurrency holdings?
A: To capitalize on historic highs, secure profits, and mitigate future volatility risks while boosting shareholder dividends.
Q: How does Meitu's exit compare to other crypto-holding firms?
A: Unlike Boyaa/LKCO, Meitu prioritized profit-taking over holding, reflecting divergent risk appetites.
Q: Could Bitcoin's price drop after reaching $100K?
A: While possible, demand dynamics (e.g., ETF approvals, halving events) may counterbalance sell pressure.
Note: This analysis excludes promotional links or speculative financial advice. Strategic decisions should align with individualized risk assessments.