In a surprising twist of events, Meitu — the company best known for its photo-editing apps — has made headlines not for its software, but for its savvy cryptocurrency investments. In early December 2025, Meitu announced it had fully liquidated its holdings in Bitcoin and Ethereum, netting a staggering 571 million RMB (approximately $800 million USD) in profit. This windfall surpasses the company’s entire net profit from 2024, marking a dramatic shift in how investors view tech companies with diversified financial strategies.
This move underscores a growing trend: digital asset investment as a strategic financial tool for tech firms. But how did a company rooted in image editing become one of the most talked-about players in the crypto space? Let’s dive into the details.
The Bold Move That Changed Everything
On December 4, 2025, Meitu released an official announcement confirming the complete sale of its cryptocurrency portfolio. The company had previously acquired approximately 31,000 units of Ethereum (ETH) and 940 units of Bitcoin (BTC) back in 2021, spending roughly $50.5 million and $49.5 million respectively.
At the time, this made Meitu the first Hong Kong-listed company to publicly allocate capital to cryptocurrencies. Its chairman,蔡文胜 (Caì Wénsèng), boldly declared on social media: “Someone has to be the first to eat the crab.” His statement captured the pioneering spirit behind the decision — one that would eventually pay off in record-breaking fashion.
By the time of the sale, the value of those assets had surged. The total cash proceeds from selling ETH reached about $100 million**, while BTC brought in **$80 million, more than doubling their initial investment.
“After the sale, our group no longer holds any Bitcoin or Ethereum,” Meitu stated, signaling a strategic pivot back to core operations with a significantly strengthened balance sheet.
A Rollercoaster Ride Through Market Volatility
Meitu’s journey wasn’t without turbulence. The crypto markets crashed in 2022, with both Bitcoin and Ethereum shedding significant value. That year alone, Meitu reported:
- A fair value loss of 112 million RMB on its crypto holdings.
- Impairment losses of 86.6 million RMB on Ethereum and 198.2 million RMB on Bitcoin.
For a period, critics questioned whether the company had strayed too far from its core mission. However, resilience paid off. By mid-2023, market recovery allowed Meitu to reverse 185 million RMB in impairment losses, setting the stage for a powerful rebound.
Fast forward to late 2024 and early 2025: favorable regulatory signals, institutional adoption, and geopolitical shifts — including increased support for digital assets — fueled a bull run. Bitcoin skyrocketed past key milestones:
- Broke $70,000 on November 6
- Crossed $80,000 by November 10
- Touched $90,000 by November 16
- Nearly hit $99,000 by November 22
Then, just one day after Meitu finalized its exit strategy, Bitcoin surged past $103,000, validating the timing of their decision.
Strategic Reinvestment: Fueling Growth in Core Business
With such a substantial gain, the question became: What’s next?
Meitu’s leadership revealed a clear plan:
- Approximately 80% of the net proceeds will be distributed as a special dividend to shareholders.
- The remaining funds will be allocated as general working capital, primarily aimed at expanding its subscription-based imaging and design products.
This focus aligns perfectly with Meitu’s evolving business model. In 2024, revenue from this segment hit 1.33 billion RMB, up 52.8% year-over-year. For the first half of 2025 alone, it generated 930 million RMB, growing 54.5% and accounting for 57.4% of total revenue.
The company is also investing heavily in AI-driven features. In H1 2025:
- R&D spending reached 425 million RMB, up 44.5% annually.
- Over 83% of user interactions involved AI-powered tools.
- Monthly active users (MAUs) hit 258 million, up 4.3%.
- Paid subscribers exceeded 10.81 million, with a penetration rate of 4.2% — a new high.
These numbers reflect a transformation: Meitu is no longer just an app developer; it’s becoming an AI-powered creative platform.
Embracing AI Without Joining the Arms Race
Wu Xin Hong (Wú Xīnhóng), Meitu’s founder, CEO, and chairman, has been candid about the company’s AI strategy.
“We won’t engage in a model arms race,” he said in a recent interview. “Our goal is to maintain competitive applications while controlling investment in foundational models.”
Instead of building massive video-generation models to compete with global giants like Google or Meta, Meitu focuses on practical integration: embedding AI seamlessly into user-facing tools.
“Model as application is the future,” Wu emphasized. He believes that while large model development is capital-intensive, the real value lies in applying these models effectively — where the market opportunity could be tenfold larger.
Many Chinese AI firms are now shifting toward application-first models, and Meitu sees itself at the forefront of this trend.
Market Reaction and Future Outlook
Investors responded positively to the news. On December 5, Meitu’s stock rose 6.29%, closing at 3.04 HKD, with market capitalization reaching 13.787 billion HKD.
The successful exit from crypto positions not only boosted investor confidence but also demonstrated sound financial stewardship. By locking in profits at a market peak and reinvesting in scalable, recurring-revenue businesses, Meitu has positioned itself for sustainable long-term growth.
Frequently Asked Questions (FAQ)
Q: Why did Meitu invest in cryptocurrency in the first place?
A: As a forward-thinking tech company, Meitu viewed digital assets as part of a diversified treasury strategy. It aimed to explore new value creation avenues beyond traditional finance.
Q: Did Meitu suffer losses during the 2022 crypto crash?
A: Yes. The company recorded impairment losses totaling over 284 million RMB due to declining prices of Bitcoin and Ethereum during that period.
Q: Is Meitu still holding any crypto assets now?
A: No. As per its official announcement, Meitu has fully exited its positions in both Bitcoin and Ethereum.
Q: How will the crypto profits be used?
A: About 80% will go toward a special dividend for shareholders; the rest will fund growth in its subscription-based imaging products and AI development.
Q: What role does AI play in Meitu’s current products?
A: AI powers over 83% of user interactions across Meitu’s apps, enhancing features like image enhancement, background removal, style transfer, and video editing.
Q: Could Meitu re-enter the crypto market in the future?
A: While nothing is ruled out, there are currently no plans to repurchase digital assets. The focus remains on strengthening core product lines and AI capabilities.
Meitu’s story offers a compelling case study in strategic risk-taking and disciplined execution. From riding the crypto wave to harnessing AI for product innovation, it shows how agility and vision can redefine a company’s trajectory.
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