Shares of Meitu Inc (HK:1357), a Chinese app operator, surged on Thursday after the company sold its entire cryptocurrency holdings, valued at $180 million, to take advantage of the recent digital asset rally.
Meitu revealed that it sold 31,000 Ethereum units and 940 Bitcoin units, which were originally purchased in 2021. This sale generated significant profits, amounting to around $80 million, according to an announcement on Wednesday.
Following the news, Meitu’s stock on the Hong Kong exchange rose by as much as 4%, reaching HK$3.12.
The sale was announced just ahead of Bitcoin’s milestone surge beyond $100,000 on Thursday. Bitcoin has gained approximately 140% in 2024, with most of the increase occurring in November after Donald Trump’s presidential election win.
Meitu stands out as one of the few Hong Kong-listed companies to openly disclose its cryptocurrency investments.
The company’s board revealed plans to use about 80% of the net proceeds from the sale for a special dividend, which will be HK$0.109 per share.
The remaining funds will be reinvested into Meitu’s photo, video, and design products business, which operates on a premium subscription model.
