Meitu Makes History With $40 Million Crypto Treasury Purchase of Bitcoin and Ethereum

In a move that sent ripples through both the crypto and corporate finance worlds, Chinese tech company Meitu announced on March 7, 2021, that it had purchased approximately $40 million worth of Bitcoin and Ethereum for its corporate treasury. The Hong Kong-listed firm, best known for its popular selfie and photo-editing apps, acquired 379.12 Bitcoin for roughly $17.9 million and 15,000 Ethereum for approximately $22.1 million.

The purchases were executed on March 5, 2021, at average prices of around $47,105 per Bitcoin and $1,473 per Ethereum. At the time of the announcement, Bitcoin was trading at approximately $51,206, while Ethereum sat near $1,723, meaning the company was already sitting on unrealized gains.

TL;DR

• Meitu bought 379.12 BTC (~$17.9M) and 15,000 ETH (~$22.1M) for its treasury
• First major publicly traded company to purchase Ethereum as a treasury reserve asset
• Following Tesla’s $1.5 billion Bitcoin purchase earlier in 2021
• Meitu shares surged on the Hong Kong Stock Exchange following the announcement
• Chairman Cai Wensheng is a known crypto enthusiast driving the strategy

A Bold Bet From an Unlikely Player

Meitu is not the kind of company most people associate with cryptocurrency. Founded in 2008, the firm built its empire on beauty-filtering apps that became so ubiquitous in China that “to Meitu” became a verb meaning “to beautify a photo.” But as smartphone manufacturers added built-in filters and competition intensified, Meitu’s fortunes waned. Its stock had plummeted from a peak of HK$18 in 2017 to less than HK$3 at the time of the crypto purchase.

The company, now 13 years old, described the crypto acquisition as part of a broader strategy to diversify and explore new growth avenues. In a filing with the Hong Kong Stock Exchange, Meitu stated that the board believed blockchain technology and digital assets had “immense potential” and that the investment would serve as a treasury diversification strategy.

The Ethereum Factor: A Corporate First

While Tesla’s headline-grabbing Bitcoin purchase in February 2021 set the template for corporate crypto adoption, Meitu went a step further by allocating more than half of its crypto budget to Ethereum. The $22.1 million ETH purchase made Meitu the first major publicly traded company anywhere in the world to hold Ethereum on its balance sheet.

This was not an accident. Meitu’s chairman, Cai Wensheng, has long been known as a cryptocurrency enthusiast, and the company indicated it saw value in Ethereum beyond mere price appreciation. The firm suggested it was interested in Ethereum’s smart contract capabilities and the booming decentralized finance ecosystem being built on top of the network.

At the time of purchase, Ethereum’s price had surged over 21% in just seven days, trading at $1,723 with a market capitalization approaching $200 billion. The broader DeFi ecosystem on Ethereum had locked in over $40 billion in total value, underscoring the network’s growing importance in the financial landscape.

Following the Tesla Playbook

Meitu’s move came just weeks after Tesla disclosed a $1.5 billion Bitcoin purchase in an SEC filing, a moment widely credited with igniting the first quarter’s massive crypto rally. While Meitu’s $40 million investment was modest by comparison, its inclusion of Ethereum represented a significant expansion of the corporate crypto treasury model.

The announcement immediately boosted Meitu’s share price on the Hong Kong exchange, with investors apparently rewarding the company’s willingness to embrace digital assets. The market reaction suggested that shareholders viewed the crypto allocation as a credible growth strategy rather than a speculative gamble.

Broader Market Context

The Meitu announcement came amid a broader crypto market surge. Bitcoin had climbed 13.45% over the previous week to $51,206, while the total cryptocurrency market capitalization stood at approximately $1.54 trillion. Binance Coin (BNB) was trading at $240, Cardano (ADA) had reached $1.13, and Polkadot (DOT) sat at $35 — all reflecting a market in full risk-on mode.

The corporate treasury trend was accelerating rapidly in early 2021. MicroStrategy had been accumulating Bitcoin since August 2020, Tesla joined in February, and now a Chinese tech company was broadening the playbook to include Ethereum. The pattern suggested that crypto was moving from a niche asset class to a mainstream component of corporate finance strategy.

Why This Matters

Meitu’s dual Bitcoin-Ethereum purchase was a watershed moment for several reasons. First, it proved that corporate crypto adoption was not limited to Bitcoin — Ethereum had arrived as a legitimate treasury asset. Second, it showed that the trend was global, extending beyond American tech companies to Asian markets. Third, Meitu’s status as a struggling consumer app company, rather than a fintech or payments firm, demonstrated that crypto adoption was broadening across all sectors.

The move also raised questions about the evolving nature of corporate finance in 2021. With interest rates near zero and traditional safe-haven assets offering minimal returns, companies like Meitu were increasingly willing to allocate capital to volatile but high-upside digital assets. Whether this strategy would prove prescient or reckless remained to be seen, but the market’s immediate reaction was clear: crypto treasury strategies were being rewarded.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.