Meitu loses on bitcoin but gains on ethereum

Meitu, a Hong Kong-based company, released on July 6 an announcement pertaining to its crypto assets, namely bitcoin and ethereum.

This was in reference to earlier announcements made by the company when it purchased the digital assets.

It can be recalled that back in March and April, Meitu purchased 31,000 units of ethereum and 940 bitcoins, adding up to $50.5 million and $49.5 million, respectively. These were regarded by the company as its intangible assets.

Losses and gains

Meitu shared the current value of the digital assets it has purchased and according to the company, as of June 30, almost two months after the purchase, the cryptocurrencies were valued as $65.2 million for ethereum and $32.2 million for bitcoin.

As it turns out, Meitu lost $17.3 million for its investment in bitcoin. However, it was able to offset some of its losses, as it gained $14.7 million from ethereum.

During the time of the announcement, prevailing market prices put the value of Meitu’s bitcoin stash at $32.8 million and its ethereum holdings at $72.4 million, showing a small recovery for the leading cryptocurrency by market capitalization.

The company also clarified that it has not sold any coins out of the Cryptocurrency Investment Plan as its board still maintains its belief in the blockchain industry.

Ethereum’s value rise

For a while now, there have been speculations around the market that ethereum might overtake bitcoin and while that is not the case right now, Meitu’s announcement makes this look like a real possibility.

Ethereum, the leading altcoin, has been a far better performer compared to its main rival, bitcoin, holding its own even as the market has plunged.

Bitcoin has lost over half of its all-time market high but ethereum is currently holding at just about 50% of its all-time high.

 

Image courtesy of Cointelegraph News/YouTube

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