Meitu, the first Hong Kong-listed company to make substantial investments in Bitcoin and Ethereum, has announced a shift in its business focus. The company, which initially invested about US$100 million in these cryptocurrencies, has stated that its growth now comes from its AI business.
Founded in 2008, Meitu is a leading tech company in China, known for its photo editing apps and smartphone technology. In March 2021, Meitu made headlines when it purchased $22.1 million worth of Ether and $17.9 million worth of Bitcoin. This move was seen as a diversification strategy by the company.
Moving away from digital assets
However, the company has recently indicated that it no longer focuses on cryptocurrency and may sell at the right time. This shift in focus aligns with the company’s core competencies in AI-driven image and video processing technologies.
Mike Cai Wensheng, Meitu’s co-founder and chairman, had previously stated on Chinese social media platform WeChat that his company was the first Hong Kong-listed firm to hold Bitcoin and the world’s first listed company to hold Ether in its treasury. However, with the recent announcement, it seems that the company is moving away from its cryptocurrency investments.
Refocusing on core business
The decision to shift focus from cryptocurrency to AI indicates Meitu’s commitment to its core business. It also reflects the volatile nature of the cryptocurrency market and the regulatory uncertainties surrounding it.
In conclusion, while Meitu’s initial investment in cryptocurrencies was seen as a bold move, the company’s decision to shift its focus back to its AI business underscores the importance of aligning business strategies with core competencies. Despite this shift, Meitu’s experience with cryptocurrencies provides valuable insights into the opportunities and challenges associated with integrating digital assets into a company’s investment portfolio.