Chinese Giant Meitu Receives ETH Profits of RMB 425.6 Million, Loses Funds on Bitcoin

Chinese crypto journalist Colin Wu, who covers everything to do with blockchain and crypto, has shared an article from a Chinese media outlet, saying that the Chinese behemoth Meitu has made massive profits on Ethereum and lost money on Bitcoin.

As per the data disclosed by the company, by the end of 2021, they had earned 425.6 million yuan on the second largest cryptocurrency.

Meitu, a Chinese listed company, disclosed its 2021 financial report: As of December 31, 2021, the value of the purchased Bitcoin was depreciated by RMB 28.5 million, and the purchased ether was increased by approximately RMB 425.6 million.https://t.co/SC5KO993Ry

— Wu Blockchain (@WuBlockchain) March 30, 2022

Meitu invests in Bitcoin and Ethereum

In March of last year, Chinese publicly-traded company Meitu, a fintech giant, announced that it had invested in the two biggest digital currencies, Bitcoin and Ethereum, putting $22.1 million in BTC and buying $17.9 million worth of ETH.

Meitu is the producer of a popular photo app that boasts a user base of 456 million clients. It was the first publicly traded company in China that chose to invest in cryptocurrencies, considering the anti-crypto environment that has been dominant in the country since September 2017, when the first crypto ban was imposed.

It was followed by the work of the Chinese central bank on its own CBDC (known as DCEP), and a ban on crypto mining and cryptocurrency operations in September 2021, which made multiple mining pools and exchanges flee the country to the U.S. and Kazakhstan.

ETH investment brings $67 million

According to the report disclosed by the company, as of Dec. 31, the value of the purchased Ethereum had soared by 425.6 million yuan, which is the equivalent of $67 million.

As for Bitcoin, the company’s investment in digital gold has depreciated by 28.5 million RMB: $4,486,886.

In 2021, Ethereum soared to an all-time high above $4,000 in May. Later on, after going back under that level, ETH reached a new historic peak, hitting $4,891 on Nov. 16.

Ethereum dropped back below $4,000 in December, went below $3,000 and has only managed to recover the latter recently.