A representation of the Ethereum virtual currency standing on a PC motherboard. File picture: Dado Ruvic/Reuters
A representation of the Ethereum virtual currency standing on a PC motherboard. File picture: Dado Ruvic/Reuters

Chinese tech firm becomes pioneer in cryptocurrency buying

By Floyd Matlala Time of article published Mar 8, 2021

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As the booming world of cryptocurrency continues to make headlines and attract big shot investors within the corporate world, Chinese app Meitu recently bought $40 million worth of bitcoin and ethereum.

According to CNBC News the Chinese tech company bought $22.1 million worth of ether and $17.9 million worth of bitcoin on March 5.

Although the likes of Elon Musk’s company Tesla and Jack Dorsey’ Square made their cryptocurrency purchase before Meitu, the Chinese appmaker appears to be the first major company to buy ether, a cryptocurrency that works on the ethereum blockchain.

Meitu said in a statement that “blockchain technology has the potential to disrupt both existing financial and technology industries, similar to how mobile internet has disrupted the PC internet and many other offline industries.”

“The Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management,” Meitu said.

“The move demonstrates to investors that Meitu has the vision and determination to embrace technological evolution, and hence preparing its foray into the blockchain industry,” Meitu Added.

Meitu is not the first tech company to make its mark within the cryptocurrency space as it joins the likes of Tesla and Square in purchasing bitcoin.

In February Square bought $170 million worth of bitcoin and Tesla has bought $1.5 billion worth of bitcoin.

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