Meitu, the Chinese tech company best known for its photo-editing apps, has generated significant profits by divesting its cryptocurrency holdings. On December 4, the Hong Kong-listed firm announced it sold all its Ethereum (ETH) and Bitcoin (BTC) assets, netting approximately 571 million yuan ($81.7 million) — surpassing its 2023 net profit of 378 million yuan.
From Photo Apps to Crypto Pioneer
In 2021, Meitu became the first港股上市公司 to publicly invest in crypto assets, purchasing:
- 31,000 ETH (~$50.5M)
- 940 BTC (~$49.5M)
- Chairman Cai Wensheng famously stated: "Someone had to be first to eat the crab."
Rollercoaster Crypto Journey
2022 brought severe market downturns:
ETH/BTC holdings depreciated by:
- 112 million yuan (mid-2022)
- 284.6 million yuan (full-year)
2023-24 saw a dramatic recovery:
| Cryptocurrency | Purchase Price | Sale Price | Profit/Loss |
|---|---|---|---|
| Ethereum | $50.5M | $100M | +$49.5M |
| Bitcoin | $49.5M | $80M | +$30.5M |
Strategic Exit at Market Peak
The company timed its exit perfectly amid 2024's crypto surge:
Bitcoin's record-breaking rally:
- Nov 6: $70,000
- Nov 22: $99,000
- Sold holdings just before BTC crossed $103,000 on Dec 5
Redirecting Funds to Core Business
Proceeds will be allocated:
- 80% → Special dividends for shareholders
- 20% → Expanding subscription-based imaging/design services
👉 Discover how top companies leverage crypto assets
Main Business Thriving
Meitu's core products show strong growth:
- 2023 revenue: 1.33B yuan (+52.8% YoY)
H1 2024 highlights:
- Revenue: 930M yuan (+54.5%)
- Paid subscribers: 10.81M (record high)
- MAUs: 258M (+4.3%)
AI and Model Strategy
While investing heavily in AI:
- H1 2024 R&D spending: 425M yuan (+44.5%)
83% of daily processed images/videos use AI features
CEO Wu Xinhong emphasizes:"Model-as-application is the trend. We won't compete in video model arms races against global giants."
FAQ
Q: Why did Meitu originally invest in cryptocurrency?
A: As an early corporate adopter, Meitu sought to diversify reserves and capitalize on crypto's growth potential during the 2021 bull market.
Q: How did market conditions affect their crypto strategy?
A: The 2022 crash caused significant losses, but holding through 2023-24's recovery allowed profitable exit during Trump-era crypto rallies.
Q: What's next for Meitu after crypto sales?
A: Focus on premium subscription services and AI-powered imaging tools, with controlled model development costs.
👉 Learn about strategic crypto investment approaches
Key Takeaways
- Meitu demonstrates how corporations can strategically navigate crypto volatility
- Profitable exits require precise market timing and risk management
- Successful companies balance innovation with core business priorities
All figures converted at 1 USD = 7 CNY for consistency