According to the announcement, due to financial losses incurred from investing in cryptocurrencies amidst the continuous market downturn, the Chinese technology company Meitu has decided to divest its entire crypto investment portfolio and redirect its capital towards the field of artificial intelligence (AI).
It is known that in March 2021, Meitu spent $100 million to acquire 31,000 ETH and 940.89 BTC. However, due to cryptocurrency market volatility and macroeconomic conditions, the company faced approximately $24.76 million in losses. Faced with this situation, the company had to halt its crypto investment activities and planned to gradually liquidate its Bitcoin and Ethereum assets at an appropriate time.
Kang Yikong, Meitu’s Senior Investor Relations Director, confirmed that the company has no intention to continue holding cryptocurrencies. Instead, Meitu will reinvest this capital into the promising field of artificial intelligence. The AI sector has proven to be a profitable revenue source for Meitu, helping the company grow rapidly and maintain stability amid the current economic uncertainties.
From Meitu’s perspective, it is one of the most popular mobile app manufacturers in China with a market capitalization of $2 billion.