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Meitu bears loss of more than $43 million in cryptocurrency investment

As per a financial filing, it was revealed that the loss has more than doubled from the last quarter, as was anticipated by the firm

Meitu bears loss of more than $43 million in cryptocurrency investment
Michael Saylor, co-founder, MicroStrategy, emphasised the use of BTC as a treasury reserve for replacement of a part of the US dollar

Hong Kong technology company Meitu reported close to $100 million in cryptocurrency holdings in April, 2021. However, with the starting of the bear market, the technology firm made losses worth half the valuation of its cryptocurrency holdings, as reported by Cointelegraph. 

On the basis of information by Cointelegraph, through a local media report, Meitu reported losses over 300 million yuan ($43.4 million) on its cryptocurrency holdings. As per a financial filing, it was revealed that the loss has more than doubled from the last quarter, as was anticipated by the firm. The technology company said that its cryptocurrency holding deposits could have an effect on the net loss of the company by the end of first half of the year.

As per Cointelegraph, through a July exchange filing, Meitu reportedly had cryptocurrency holdings worth 940 Bitcoin (BTC) and 31,000 Ether (ETH), bought for $49.5 million and $50.5 million, respectively. Net cryptocurrency investments of the company was reported to be close to $100 million, and the firm lost nearly half of the valuations of its investment by Q2, 2022, with regard to the current downturn in cryptocurrency market.

Moreover, Cointelegraph noted that apart from Meitu, a cryptocurrency company investing in Bitcoin, sustained losses on cryptocurrency investments worth more than $900 million on its BTC holdings in Q2, 2022. Michael Saylor, co-founder, MicroStrategy, emphasised the use of BTC as a treasury reserve for replacement of a part of the US dollar. The idea received attention due to BTC reaching new all-time high every month, and companies such as Tesla, SpaceX, and over a reported dozen public companies joined the initiative. However, Bitcoin’s price has seen a fall by over 70% from its top and is currently traded at one-third of its all-time high value.

Going by Cointelegraph’s official website, founded in 2013, Cointelegraph is the digital media resource covering news on blockchain technology, cryptocurrency assets, and financial technology (fintech) trends.

(With insights from Cointelegraph)

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