HK agency Meitu nurses Bitcoin (BTC) losses after shopping for the highest in April

 HK agency Meitu nurses Bitcoin (BTC) losses after shopping for the highest in April


Chinese language tech firm Meitu, which made a number of investments within the two largest cryptocurrencies between March and April of 2021, revealed its impairment loss on Bitcoin holdings in a current interim outcomes announcement.

The Hong Kong Inventory Change-listed photograph modifying firm holds tens of millions of {dollars} value of Bitcoin (BTC) and Ethereum (ETH) as a part of its treasury funds.

Win some, lose some

The corporate has bought cryptocurrencies totaling roughly $100 million in the course of the six months ended June 30, 2021.

As of June 30, Meitu’s Bitcoin holdings amounted to $32,2 million and its Ethereum holdings amounted to $65.2 million, recording an total $2,6 million lower from the corporate’s preliminary funding.

The funding consisted of 31,000 Ethereum at mixture money concerns of $49,484,000 and roughly 940 Bitcoin at mixture money concerns of $50,516,000.

“The lower in truthful worth of the acquired Bitcoin as of June 30, 2021, within the quantity of roughly RMB111,9 million was acknowledged as impairment, whereas the rise in truthful worth of the acquired Ethereum as of June 30, 2021, within the quantity of roughly RMB94,9 million was not acknowledged as revaluation achieve,” learn the corporate’s interim report for the primary half of the yr, revealing that Meitu recorded $17,3 million loss on its Bitcoin holdings, whereas its Ethereum funding gained $14,7 million.

Remaining bullish

“However the foregoing, the impairment in relation to the acquired Bitcoin as of June 30, 2021, is reversible (whether or not in complete or partially) within the Group’s upcoming annual outcomes for the yr ending December 31, 2021, ought to there be a subsequent improve within the truthful worth of the Acquired Bitcoin as of the top date of the monetary yr,” learn the report, indicating that Meitu doesn’t plan to promote its crypto any time quickly.

The corporate disclosed earlier in July that it has no plans on promoting its crypto holdings and elaborated that “the Board believes that the blockchain business remains to be in its early stage and that cryptocurrencies have ample room for appreciation in worth over the long-term.”

Bitcoin noticed its all-time excessive on April 14, when its worth hit $65,000 however was trending at $35,000 on June 30. 

Judging by the crypto’s current restoration, with its worth witnessing a 25,81% improve in the course of the previous 30 days, Meitu’s upcoming annual outcomes might be singing a special tune, certainly.

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