Shares of China based photo editing and beauty app Meitu Inc. (01357) surged after the Hong Kong stock exchange listed company invested in cryptocurrency. On 8 March the company announced having invested $40 million in cryptocurrencies.
Moments after the announcements shares of the company rallied by 8%.
According to regulatory filings, Meitu bought Ether worth $22.1 million, currently Ether is the world’s second largest cryptocurrency after leader Bitcoin by market capitalization. The company also bought Bitcoin worth $17.9 million.
World notable companies have been adding Bitcoin to their balance sheets Meitu becomes the latest company to invest into cryptocurrency as part of its treasury operations.
The company said this investment is just a preparation to penetrate the blockchain industry further adding it would be financing future investments from its existing cash reserves.
Meitu is also in the process of evaluating the feasibility of upgrading blockchain technologies into overseas businesses this will include projects on the Ethereum blockchain network.
Citing the regulatory filing, the investment seems to be in line with Meitu’s long term goals because Ether powers contracts and applications on the Ethereum network meaning buying Ether was a strategic preparation.