By Kevin Reynolds | Coindesk
Hong Kong-listed Meitu Inc. , which makes image and video processing software, said it had purchased $22 million in ether (ETH, +3.52%) (ETH) and $17.9 million of bitcoin (BTC, +3%) (BTC), making it the first time a firm has disclosed a major purchase of ETH for its treasury.
Meitu said it bought 15,000 ETH and 379.1 BTC in open market transactions on March 5. The purchases were under the terms of a previously board-approved cryptocurrency investment plan that allows the company to put up to $100 million of crypto, financed by cash reserves other than any remaining proceeds from Meitu’s 2016 IPO.
While the company said that while buying crypto helps diversify its holdings away from cash, “More importantly, the Board considers this a demonstration to investors and stakeholders that the Group has the vision and determination to embrace technological evolution, and hence preparing its foray into the blockchain industry.”
The company said it’s evaluating the feasibility of integrating blockchain tech into its overseas business, including launching Ethereum-based dApps. ETH is the native token of the Ethereum blockchain. It’s also evaluating potential investments in blockchain-based projects, many of which accept ETH as consideration for investment.
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