HONG KONG (Reuters) – Shares of Hong Kong-listed Chinese photo editing app Meitu Inc rose 14.4% on Monday morning after the company said it bought $ 40 million in cryptocurrency.
The beauty-focused tech company said in a Sunday night exchange that it bought $ 22.1 million worth of Ether, the world’s second-largest cryptocurrency by market cap, and $ 17.9 million worth of Bitcoin on March 5.
Meitu is the latest company to announce that it will hold cryptocurrencies as part of its treasury operations. Last month, Tesla Inc revealed that it bought $ 1.5 billion worth of Bitcoin, which sent the price of the token up 20%.
Meitu said the purchase was partly for an investment and partly to prepare to enter the blockchain industry, and that he would fund it from his existing cash reserves.
The company is evaluating the feasibility of integrating blockchain technologies into its overseas operations, which could include projects on the Ethereum blockchain network.
Ether powers contracts and applications on the Ethereum network, so buying it was “logical preparation,” according to the filing.
Shares of Meitu slashed gains and were up 5%, beating a 0.5% rise in the local benchmark.
Reporting by Alun John; Edited by Subhranshu Sahu