In early March 2025, Meitu—the company behind the popular photo-editing app MeituPic—made headlines by announcing a bold strategic move: the acquisition of $40 million worth of Bitcoin (BTC) and Ethereum (ETH), totaling approximately RMB 260 million. This high-profile investment sparked widespread debate about the company’s long-term vision, its financial health, and the growing trend of corporations embracing digital assets as part of their treasury strategy.
But what does this mean for Meitu? Is this a genuine step toward blockchain innovation, or merely a speculative play to ride the crypto wave? Let’s dive into the details.
A Strategic Move or Market Hype?
On March 7, 2025, Meitu disclosed in a Hong Kong Stock Exchange filing that it had purchased 15,000 ETH and 379 BTC on the open market. The transactions amounted to roughly $22.1 million and $17.9 million respectively, bringing the total to $40 million. At the time of purchase, this translated to an average price of about $1,473 per ETH and $47,200 per BTC.
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Within days, both cryptocurrencies saw price appreciation. Ethereum climbed to $1,733, while Bitcoin reached $50,300—giving Meitu an unrealized gain of approximately 17.65% on ETH and 6.57% on BTC. Combined, the portfolio gained around $5.08 million in value almost immediately.
According to Meitu’s official statement, the investment was made under a board-approved cryptocurrency strategy allowing up to $100 million in digital asset purchases. The funds came from existing cash reserves—not IPO proceeds—indicating a calculated effort to diversify its holdings amid global monetary expansion and inflation concerns.
The company emphasized that holding crypto aligns with its broader ambition to embrace technological innovation and prepare for potential entry into the blockchain space.
Leadership Vision: “Someone Has to Take the First Bite”
Meitu’s chairman, Cai Wensheng, reinforced this narrative on social media, declaring: “Someone has to take the first bite of the crab.” He positioned Meitu as a pioneer—potentially the first Hong Kong-listed company to adopt BTC and the first globally to treat ETH as a reserve asset.
While visionary, this move drew skepticism. Critics questioned whether buying crypto equates to real blockchain development. Some online commentators dismissed it as mere speculation: “If you want profits, just say so. True believers build; buyers just chase trends.”
Others raised practical concerns—pointing out Meitu’s past financial struggles and workplace conditions—as evidence that the crypto purchase might be more about publicity than substance.
Financial Context: Can Meitu Afford This Gamble?
To understand the significance of this move, we must examine Meitu’s financial history.
Founded in 2008, Meitu became a household name with apps like MeituPic and BeautyCam. It went public in December 2016 at HK$8.50 per share, briefly peaking at HK$23.05 in 2017 before a prolonged decline. By late 2019, shares hit a low of HK$1.32. Although there was a rebound in early 2025—with prices touching HK$4.50—the stock later settled around HK$2.54, giving the company a market cap of about HK$1.1 billion.
More concerning is its track record of losses. From 2013 to 2019, Meitu accumulated a staggering RMB 12.1 billion in net losses. Even in the first half of 2025, it reported a small net loss of RMB 16 million—though adjusted net profit reached RMB 24.94 million, marking a rare period of profitability.
User metrics remain strong: as of mid-2025, Meitu reported 295 million monthly active users (MAUs), with MeituPic at 121 million MAUs and BeautyPlus growing to 78 million. Average daily usage stood at 15.4 minutes—an increase of over 13% year-on-year.
Revenue diversification is also underway. While online advertising still accounts for over half of income (57%), non-ad revenue surged to 43% in H1 2025. Subscription services grew by 209%, and other income—including e-commerce testing—jumped 126%.
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Meitu has signaled ambitions beyond photo editing—exploring beauty e-commerce and medical aesthetics. Live-stream shopping trials began in early 2025, aligning with broader industry trends where visual platforms monetize user trust through direct sales.
Corporate Crypto Adoption: A Growing Trend
Meitu isn’t alone. Tesla shocked markets in February 2025 by investing $1.5 billion (RMB 9.76 billion) in Bitcoin—reportedly at an average cost below $35,000—locking in a paper profit of over 43%. Despite initial price spikes, Tesla’s stock has since declined by nearly 30%, raising questions about investor sentiment toward crypto-linked corporate strategies.
Similarly, MicroStrategy has amassed over 91,000 BTC at an average cost of $24,119—now worth nearly $4.6 billion. Yet its stock has dropped more than 52% from its peak.
These cases highlight a critical tension: while crypto investments can boost balance sheets on paper, they may introduce volatility that unsettles traditional investors.
The Debate Over Digital Assets
The financial world remains deeply divided over cryptocurrency.
Bullish voices like Cathie Wood of ARK Invest predict Bitcoin could reach multi-trillion-dollar market caps. She theorizes that if S&P 500 companies allocated just 1% of their cash to BTC, its price could rise by $40,000.
Conversely, skeptics remain vocal. U.S. Treasury Secretary Janet Yellen has warned about illicit financing risks and environmental costs due to high energy consumption. European Central Bank President Christine Lagarde labeled Bitcoin a “highly speculative asset” linked to money laundering.
Charlie Munger, Warren Buffett’s longtime partner, bluntly stated: “I don’t buy gold, so I don’t buy Bitcoin.” He views it as an unstable substitute with no intrinsic value.
Frequently Asked Questions
Q: Did Meitu really become the first company to hold Ethereum as a reserve?
A: While Meitu claimed this milestone, other firms had previously included ETH in treasury holdings. However, it may be among the first Asian-listed companies to do so publicly.
Q: Is Meitu developing blockchain products?
A: Not yet. The current move appears financial rather than technical. There's no public roadmap for blockchain integration beyond strategic positioning.
Q: How much risk does this pose to Meitu’s finances?
A: With $40 million allocated from existing reserves—and a $100 million cap—the exposure is significant but not existential given its cash position and recent profitability trends.
Q: Could this help Meitu attract younger users?
A: Possibly. Aligning with crypto culture may enhance brand relevance among tech-savvy demographics interested in Web3 and digital ownership.
Q: What happens if crypto prices crash?
A: The investment would incur losses, potentially impacting investor confidence. However, unless prices collapse drastically, the impact should be manageable within its risk tolerance framework.
Q: Is this legal for a Hong Kong-listed company?
A: Yes—there are no regulatory prohibitions against holding digital assets as corporate reserves in Hong Kong, though accounting standards require transparent disclosure.
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Final Thoughts
Meitu’s crypto foray reflects a broader shift: companies rethinking cash management in an era of quantitative easing and digital transformation. Whether this is a stepping stone toward blockchain innovation or a short-term publicity stunt remains to be seen.
What’s clear is that corporate adoption of digital assets is accelerating—and with it comes both opportunity and scrutiny.
For Meitu, the next phase will likely involve turning this symbolic gesture into tangible value—through product integration, user engagement, or strategic partnerships in the decentralized ecosystem.
As the line between finance and technology blurs, one thing is certain: the conversation around crypto in corporate strategy is only getting started.
Core Keywords: Meitu, Bitcoin investment, Ethereum reserve, corporate crypto adoption, digital asset strategy, blockchain innovation, treasury diversification, crypto market trends