Meitu's Strategic Exit from Cryptocurrency
On December 4, 2024, Meitu Inc. announced it had fully divested its cryptocurrency holdings, selling approximately 31,000 ETH and 940 BTC for a combined $180 million. This move yielded a profit of $79.63 million (~¥571 million), with 80% allocated for special dividends.
Key Details:
- Initial Investment (2021): $50.5M in ETH (~$1,629/coin) and $49.5M in BTC (~$52,660/coin)
- 2024 Performance: Adjusted net profit reached ¥270M (+80.3% YoY), with subscription revenue up 54.5% to ¥930M
- Historical Context: The company previously faced ¥274.9M–¥349.9M losses in 2022 due to crypto market volatility
Bitcoin's Meteoric Rise and Risks
Bitcoin surged to $100,000 (~¥720,000) on December 5, marking:
- 140% YTD growth
- A 47% monthly spike from $68,000 to $100,000
Expert Insights: Navigating Volatility
Yu Jianing, Chairman of China Blockchain Alliance, cautions:
"Bitcoin's cyclical nature means highs inevitably face corrections. Investors must prioritize:
- Understanding blockchain fundamentals
- Avoiding excessive leverage
- Diversifying portfolios
Short-term speculation often leads to disproportionate risks."
FAQs: Bitcoin Investment Essentials
Q: Why did Meitu sell its cryptocurrency holdings?
A: To capitalize on peak market values and reinvest profits into core imaging/design businesses.
Q: What's driving Bitcoin's 2024 price surge?
A: Institutional adoption, scarcity (halving events), and macroeconomic factors like inflation hedging.
Q: How should new investors approach crypto?
A: Start with small allocations (<5% of portfolio), use dollar-cost averaging, and only invest disposable income.
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Strategic Takeaways for Investors
- Market Timing: Meitu's 3-year holding period demonstrates patience pays
- Risk Management: Maintain <10% exposure to high-volatility assets
- Fundamental Analysis: Study whitepapers and tokenomics before investing
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Note: All cryptocurrency investments carry inherent risks. Conduct thorough research or consult financial advisors before committing funds.