Bitcoin and Ethereum continued their bullish momentum today, with Bitcoin breaking above $98,000** and Ethereum reaching **$3,136. This rally has significantly benefited early institutional investors like Meitu (01357.HK), a Hong Kong-listed company that allocated $100 million to crypto in early 2021.
Meitu’s Strategic Crypto Portfolio
Initial Investments
- March 2021: Meitu announced purchases of $22.1 million in Ethereum (ETH)** and **$17.9 million in Bitcoin (BTC).
- Follow-up Buys: Later that month, it acquired an additional $28.4 million in ETH** and **$21.6 million in BTC, with a final round in April 2021.
- Total Holdings: Accumulated 31,000 ETH (avg. cost: $1,629/coin**) and **940.89 BTC** (avg. cost: **$52,610/coin), totaling $100 million.
Current Gains
As of 2024:
- BTC Position: 86% unrealized profit ($42.57 million).
- ETH Position: 92.5% unrealized profit ($46.76 million).
- Combined Profit: ~$89.33 million (90% ROI).
👉 How institutional investors leverage crypto bull markets
Blockchain Vision and Challenges
Leadership’s Perspective
Meitu’s then-Chairman Cai Wensheng hailed the move as groundbreaking:
"Someone had to be the first. We’re the first Hong Kong-listed firm to hold BTC and the first globally to use ETH as a reserve asset."
Early Blockchain Initiatives
- 2018: Launched Meitu Intelligent Passport (MIP), a decentralized identity verification system using facial recognition and AI.
- Accounting Treatment: Classified crypto as intangible assets under cost accounting. By mid-2021, ETH’s unrealized gains weren’t booked, while BTC’s $112 million impairment was recognized.
Market Context and Volatility
Timing and Price Swings
- 2021 Entry: Bought near BTC’s then-all-time high (~$52,610), after a 285% surge from late 2020.
- 2022 Downturn: BTC crashed to $16,200, leaving Meitu underwater until February 2024, when breakeven was achieved.
Political Catalysts
Recent gains align with pro-crypto regulatory signals under new U.S. leadership, fueling institutional adoption.
FAQ: Meitu’s Crypto Strategy
Q: Why did Meitu invest in crypto?
A: As a long-term blockchain strategy, diversifying reserves beyond traditional assets.
Q: How does Meitu account for crypto holdings?
A: As intangible assets at cost, with impairments/revaluations per accounting standards.
Q: What’s the outlook for institutional crypto adoption?
A: Growing, with ETFs and clearer regulations boosting confidence.
👉 Explore institutional crypto tools
Disclaimer: This content is for informational purposes only and not investment advice.
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