Meitu loses $ 17.3 million on Bitcoin, earns $ 14.7 million on Ether – .

Meitu loses $ 17.3 million on Bitcoin, earns $ 14.7 million on Ether – .

Hong Kong tech company Meitu took a $ 17.3 million hit on its Bitcoin (BTC) holdings – but on the upside, its Ether (ETH) holdings gained $ 14.7 million.
The developer of popular Photoshop-style apps spent a total of $ 100 million on BTC and ETH between March and April of this year, acquiring a total of 940.89 BTC for $ 49.5 million and 31,000 ETH for $ 50.5 million.

According to a voluntary announcement by Meitu on June 6, the fair value of its holdings of BTC and ETH is based on market prices as of June 30, which is the last day of the company’s half-year interim results, according to the International Financial Reporting. Standards.

At the end of the second quarter on June 30, Meitu’s BTC holdings were $ 32.2 million and its ETH $ 65.2 million, marking an overall decline of $ 2.6 million from its initial investment. of $ 100 million.

The company accounts for crypto-assets as “cost-model intangible assets” in interim results, and the BTC loss should be recognized as “impairment loss”, while ETH gains will not be recognized as an “impairment loss”. as a “revaluation gain” before time it is sold.

The interim results did not change the company’s bullish sentiments towards crypto, with the announcement reiterating:

“The board believes that the blockchain industry is still in its infancy and cryptocurrencies have a wide margin of appreciation in long-term value. “

The report stated that due to the company’s long-term vision, “there are currently no plans to sell the same in the near future.”

Interestingly, the company also provided an updated fair value of its ETH and BTC holdings as of July 6, which reveals an overall gain of $ 5.2 million on its initial investment, with ETH accounting for 72, $ 4 million and BTC edged up to $ 32.8 million.

Related: Ether Is Already ‘Freaking Out’ Bitcoin, Says Celsius CEO

Ethereum could earn even more if the popular Crypto “CroissantEth” Twitter account is correct with its thread containing 24 reasons why ETH is undervalued.

Besides the obvious use cases of ETH in smart contracts, decentralized finance, and NFTs, and the upcoming EIP-1159 upgrade and eventual transition to ETH 2.0, Croissant pointed out that 94 of the top 100 apps decentralized are built on the Ethereum network.

“These protocols often have many other use cases involving $ ETH, creating the foundation for the Web 3.0 economy,” he said.

Crescent also highlights stablecoins that use the Ethereum network, citing Tether (USDT), USD Coin (USDC), MakerDao (DAI), and TrueUSD (TUSD), as it highlighted their multi-billion market caps and pointed out that the USDC has grown from a market cap of $ 4 billion to $ 25 billion this year.

The metaverse, games, and digital terrain also receive notable mentions as it cites their huge potential for growth, along with layer two solutions, decentralized stand-alone organizations to name a few.


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