Meitu, a Hong Kong tech company has been on a buying spree accumulating most of its assets in Bitcoin and Ether. Recently, the firm disclosed it has Bitcoin and Ether worth $100 million and added Bitcoins worth $10 million on Thursday.
Meitu, which is a subsidiary of Meitu Inc bought Bitcoins worth $10 million at an average cost of $57,000 per coin. This equates to about 175.677988279 units. The company disclosed that it made the purchase from its cash reserves, that relied on spot prices in the open market.
In March, Meitu added in crypto assets worth $90 million, that were a mix of Bitcoin and Ether. When we add the purchase done on Thursday, it brings the numbers to $49.5 million worth of Bitcoin and $50.5 million ETH.
The firm acknowledged that it is Coinbase that helped them do the purchase. This comes as no surprise as Coinbase is well profiled with institutional investors such as MicroStrategy.
Rush by Institutional investors
There is still a rush into the crypto space by institutional investors. This is because of the potential of the technology in disrupting the space. Meitu, for instance ackn0wledged that Bitcoin has a big potential of disrupting both the financial and technological space, in the same way mobile internet did.
The other issue that gives Bitcoin an upper hand is its usage as a storage of value, which is fueled by the limited supply. Its decentralization and good hedge against inflation is also one of the prime reasons it is widely embraced.
From the disclosure document, Bitcoin has features that make it better than other alternative investments such as gold or real estate. This has made investors maximize on it as a store of value since the demand is on the rise.
In the Chinese market, the scene is different as China defines cryptocurrencies as commodities as opposed to currencies. This has made many firms to shy away from publicly declaring their investment in cryptocurrencies. In the country, crypto trading has been deemed illegal as one is not allowed to trade with fiat currencies. As much as the situation in the country has been hazy, many people are still doing crypto to crypto trading.