Meitu, the Chinese tech company best known for its photo-editing apps, has generated substantial profits from cryptocurrency investments—a surprising revenue stream that surpassed its core business earnings.
Key Highlights of Meitu's Cryptocurrency Venture
- Total Profit: ¥571 million (≈$80 million USD) from selling all Ethereum and Bitcoin holdings
- Comparison: Exceeds 2023's net profit of ¥378 million
- Initial Investment: Purchased 31,000 ETH (~$50.5M) and 940 BTC (~$49.5M) in 2021
- Exit Timing: Sold assets during Bitcoin's 2024 bull run (peaking at $103,000)
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Strategic Shift and Financial Allocation
Meitu announced plans to allocate 80% of crypto profits as special dividends, with the remaining 20% funding its subscription-based imaging/AI tools. This pivot aligns with the company's growing SaaS revenue:
| Business Segment | 2023 Revenue | Growth (YoY) | 2024 H1 Revenue |
|---|---|---|---|
| Imaging & Design SaaS | ¥1.33B | +52.8% | ¥930M (+54.5%) |
Challenges in Cryptocurrency Investment
The journey wasn't without risks:
- 2022 Market Crash: Recorded ¥112M in unrealized losses
- Asset Impairments: ¥86.6M (ETH) + ¥198.2M (BTC) write-downs
- Recovery: ¥185M impairment reversal in 2023
AI Focus and User Growth
Despite crypto gains, Meitu prioritizes AI-powered features:
- 83% of daily processed media use AI tools
- R&D Investment: ¥425M in 2024 H1 (+44.5% YoY)
User Metrics:
- 108.1M paid subscribers (4.2% penetration)
- 258M MAUs (+4.3% YoY)
"Model-as-application is the trend—we'll focus on practical AI implementations rather than foundational model development."
— Wu Xinhong, Meitu CEO
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Market Reaction and Outlook
The cryptocurrency divestment boosted investor confidence:
- Stock Performance: +6.29% to HK$3.04/share
- Market Cap: HK$13.79B (announcement date)
FAQ Section
Q: Why did Meitu invest in cryptocurrency initially?
A: As the first Hong Kong-listed company to hold crypto assets, Meitu aimed to diversify reserves amid 2021's digital asset boom.
Q: How will the profits impact Meitu's core business?
A: Funds will accelerate subscription services and AI development while rewarding shareholders via dividends.
Q: Does Meitu still consider crypto part of its strategy?
A: No. The company has exited all crypto positions to focus on imaging/AI solutions.
Q: What risks did Meitu face during crypto ownership?
A: Severe 2022 price drops led to significant paper losses before 2023-2024 recovery.
Q: How does AI enhance Meitu's products?
A: AI automates photo/video edits for 83% of daily processed content, improving user retention.
Q: What differentiates Meitu from competitors like Adobe?
A: Meitu targets mobile-first users with lightweight AI tools rather than professional creative suites.