HODLing for 3 years! Meitu app closed all positionsBTC, and the netizens laughed when they saw the time: dropped before 100,000

Meitu Xiu Xiu close all positionsBTC

Recently, Meitu Inc., a well-known Chinese technology company that started with the popular photo editing software Meitu Xiuxiu, announced that it has been gradually closing all positions on all of its Crypto Assets holdings since November, including 940 Bitcoins ($BTC) and 31,000 Ethereum ($ETH), with a total value of up to $180 million.

Meitu's Cryptocurrency investment began in March 2021, when the company invested a total of $100 million, with $49.5 million in Bitcoin and $50.5 million in Ethereum. With the fluctuation of Bitcoin and Ethereum prices, Meitu chose to gradually sell its holdings of encryption assets starting in 2023.

From the price of this transaction, Meitu's investment is undoubtedly successful. According to calculations, the BTC purchase cost of Meitu is $52,660, and the purchase cost of Ethereum is $1,629. The final selling prices are $85,106 and $3,225, respectively, which are nearly 98% and 62% higher than their purchase costs.

After two rounds of sales, Meitu Company raised a total of 180 million US dollars, with a net profit of about 80 million US dollars. This profit will be used as a special dividend distribution to shareholders, with 80% of the net income being distributed to shareholders, and the remaining funds will be used to further expand the company's business in the fields of photos, videos, and design.

This news also caused the stock price of Meitu to rise by 4.2% at the opening today, reporting HK$2.98.

The network looks at the time: falling before 100,000

Interestingly, this transaction has sparked a heated discussion in the market, because shortly after Meitu chose to close all positions, BTC surged to $100,000 yesterday (5th). Many people regretted missing out on the subsequent rise and jokingly referred to Meitu as "falling before reaching 100,000".

However, for Meitu, Inc., this close all positions operation is not just an investment issue, but involves the future business adjustment of the company.

Meitu Inc. stated that with the development of artificial intelligence (AI) technology, the company will shift its focus to the field of artificial intelligence and further increase its investment in core photo, video, and design businesses. This close all positions action is also seen as a necessary decision made by Meitu Inc. to accelerate business transformation.

The choice of this timing is undoubtedly full of drama. Although BTC soared after breaking the $100,000 mark and the market is still full of enthusiasm for the future, Meitu chose to exit the market before the price reached this historic high, which undoubtedly caused a high level of follow from the outside world.

From the perspective of the company's overall development strategy, this fund will help them transform and find new points of rise, but from the perspective of investors, completely closing all positions is equivalent to giving up the potential value space of Crypto Assets in the future.

Is it good or bad to close all positions of Meitu, because no one can predict the future rise and fall of Crypto Assets, it is currently unknown, however, through the profits from investing in Crypto Assets, it may be the best solution for Meitu to drive the company's transformation into the field of artificial intelligence at the moment.

Disclaimer: The market is risky and investment should be cautious. Analyst views are for reference only. Users should refer to more diverse indicators to determine whether to invest and consider whether any opinions, perspectives, or conclusions in this article are applicable to their specific situation. Investing based on this is at your own risk.

"Holding coins for 3 years! Meitu closes all positions in Bitcoin, and the netizens laughed when they saw the time: it fell before 100,000." This article was first published in the 'encryption city'.