Bitcoin's Record-Breaking Surge
Bitcoin achieved a historic milestone on December 5th, surpassing $102,900 per coin—marking its first time breaching the $100,000 threshold. This unprecedented price surge has prompted strategic moves from institutional investors who entered the crypto market during earlier adoption phases.
Meitu's Strategic Crypto Exit
Hong Kong-listed Meitu Inc. (01375.HK) made headlines with its December 4th announcement of completely divesting its cryptocurrency holdings:
Total Assets Sold:
- 31,000 ETH (Ethereum) for ~$100 million
- 940 BTC (Bitcoin) for ~$80 million
- Realized Profit: $79.63 million (~¥571 million RMB)
- Historical Context: This profit exceeds Meitu's combined 2022-2023 adjusted net profits
Capital Allocation Plan
The company plans to distribute 80% of proceeds as special dividends while retaining 20% for operational liquidity—a move signaling confidence in traditional business operations despite crypto success.
From Early Adoption to Calculated Exit
Meitu's crypto journey reflects the volatile nature of digital asset investments:
Investment Timeline:
| Period | Action | Amount Invested |
|---|---|---|
| Q1 2021 | Initial BTC/ETH purchases | $40 million |
| March 2021 | Secondary acquisition | $50 million |
| April 2021 | Final BTC top-up | $10 million |
| Total | $100 million |
Performance Phases:
- 2021-2022: Faced 60%+ portfolio devaluation with ¥284.6 million impairment losses
- 2023 Recovery: ¥270 million减值亏损拨回 (impairment reversal) as markets rebounded
- 2024 Breakthrough: Holdings finally exceeded cost basis in February before strategic exit
👉 Discover how top companies leverage crypto assets
Broader Market Implications
The cryptocurrency market continues attracting corporate participants with varying strategies:
Comparative Case Study: Boyaa Interactive (00434.HK)
Current Holdings:
- 3,183 BTC ($57.7k avg cost)
- 15,445 ETH ($2,756 avg cost)
- Different Approach: Executed ETH-to-BTC conversion in November 2024 rather than exiting positions
Blockchain Vision vs Financial Strategy
Former Chairman Cai Wensheng originally positioned Meitu's crypto holdings as "long-term blockchain value reserves," reflecting:
- Early mover advantage in Hong Kong markets
- Strategic bet on ETH's utility beyond pure asset class
- Alignment with Meitu's 2018 blockchain identity verification initiatives
Corporate Crypto Investment FAQs
Q: Why did Meitu sell all its cryptocurrency holdings?
A: The company likely implemented profit-taking strategy after achieving 300%+ returns, while rebalancing toward core photo-editing business priorities.
Q: How do companies account for cryptocurrency investments?
A: Most treat them as intangible assets with periodic impairment tests—losses reduce balance sheet value but gains aren't recognized until realization.
Q: What's the tax implication of Meitu's crypto sale?
A: Hong Kong doesn't tax capital gains, making the $571 million profit effectively tax-free for the company.
Q: Should other companies follow Meitu's investment approach?
A: Corporate crypto strategies require specialized risk management—most financial advisors recommend limiting such exposures to <5% of treasury assets.
👉 Learn institutional crypto investment strategies
Market Outlook and Strategic Insights
With Bitcoin's latest all-time high, analysts observe two diverging corporate approaches:
- Profit-Takers: Like Meitu, locking in gains after prolonged holding periods
- Portfolio Optimizers: Such as Boyaa Interactive reallocating within crypto asset classes
Key Considerations:
- Volatility management through disciplined rebalancing
- Clear exit criteria before entering positions
- Transparent communication with shareholders
The coming quarters may reveal whether more companies emulate Meitu's exit or double down on crypto positions amid evolving regulatory frameworks and institutional adoption trends.