Meitu invests $40 million in cryptocurrency, sees shares surge

After she had announced her purchase of $40 million of cryptocurrencies, shares of Hong Kong-listed Chinese photo editing app Meitu Inc have risen as much as 14.4%.

The beauty-focussed technology firm revealed in a Sunday evening exchange filing that it bought $22.1 million worth of Ether, and $17.9 million worth of Bitcoin on March 5.

Meitu joins the league of crypto holding companies as it holds cryptocurrencies as part of its treasury operations.

Meitu said the purchase was partly for investment and partly as preparation to enter the blockchain industry, and that it would finance it from its existing cash reserves.

The company is evaluating the feasibility of integrating blockchain technologies into its overseas businesses, which could include projects on the Ethereum blockchain network.

Ether powers contracts and applications on the Ethereum network, and so purchasing it was a “logical preparation”, the filing said.

Meitu’s shares pared gains and were last up 5%, outpacing a 0.5% rise in the local benchmark index.