Shares of Hong Kong-based app developer Meitu surged after news that the company has invested $40 million in Bitcoin (BTC) and Ethereum (ETH). This is the first company from the region to make such a move. Meitu invests in cryptocurrencies Yesterday, Meitu published an official statement. In it, it reported that it had invested a total of "approximately $22.1 million and $17.9 million" in ETH and BTC on March 5. This gives it 15,000 ETH and about 380 BTC. The company's CEO, Cai Wensheng, justified the move on the grounds that it was in line with the company's business plan, which is eyeing the blockchain market. Meitu is aware of the risks and that the new decision could raise the ire of Chinese authorities. The elites of the Middle Kingdom are pushing to promote the narrative that cryptocurrencies and blockchain are two different topics. In other words, the company's strategy to invest in both blockchain and cryptocurrency technology may not receive a positive response from Beijing. Meitu's CEO, however, referred to a Chinese proverb about a certain general. This one, instead of starving to death, mustered up the courage to become the first person to ever eat a scary-looking crab. This is probably an indication that Wensheng believes other companies in the region may soon follow his company's lead. The purchases were made in accordance with the cryptocurrency investment plan previously approved by the board of directors [...] under which the group may make net cryptocurrency purchases of up to $100 million, funded from existing cash reserves - the statement added. The company acquired ETH "as preparation to enter the blockchain market", while the BTC investment is part of its asset allocation strategy. China and cryptocurrencies It is worth mentioning that China is not a very cryptocurrency-friendly country. It is even suggested that the moment the digital yuan is issued will be the moment Beijing finally bans the use of Tether within its borders. Today, stablecoin, on the other hand, allows Chinese people to trade in the BTC market. However, Meitu could fully migrate if Chinese authorities want to harm it. According to media reports, the company has been registered in the Cayman Islands, which may actually help it avoid Chinese regulators' reaction to the new investment decision. The company is mainly known for its beauty and skincare app, BeautyPlus. However, it is also developing facial recognition technology. Tags bitcoin btc ETH ether investing in cryptocurrencies Meitu
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