Meitu’s Bitcoin, crypto investments down by over US$50 mln
Hong Kong-listed beauty app Meitu said on Friday it is expecting a net loss of up to 349.9 million yuan (US$52 million) in the first half of 2022, driven by tumbling cryptocurrency prices.
See related article: Hong Kong-listed Meitu buys more Bitcoin, now has US$100 million in crypto
Fast facts
Meitu, best known for its mobile beauty camera app, was one of the first Hong Kong-listed Chinese companies to publicly announce its crypto investments.
Meitu said it could see a 154% year-on-year jump in net loss over the first half of 2022.
Meitu’s estimates are unrealized losses as the firm has not sold its cryptocurrencies since accumulating 31,000 ETH and 940.89 BTC from March 2021, the firm said.
Meitu said crypto losses will not affect its cash flow or operations and that it still believes digital assets will appreciate in the long term.
On Monday morning Asia time, Meitu’s shares on the Hong Kong Stock Exchange fell as low as HK$0.97, down about 6% from last Friday’s HK$1.04 (US$0.13) per share.
See related article: Software firm Meitu loses US$17.3M on Bitcoin