Meitu, a Chinese beauty app, saw a 14.4% rise in shares on Monday after the news of the cryptocurrency investment worth $40 million, Reuters reports. According to the source, the company has purchased Bitcoin worth $17.9 million and Ether worth $22.1 million on March 5. In an announcement, the company revealed its interest in entering the blockchain technology industry.
Meitu is a company founded in 2008 specializing in AI-driven technologies for photo and video processing. They released several beauty apps and have a listing on the Hong Kong Stock Exchange since 2016. Years later, now Meitu apps have a large user following, both in China and internationally.
With the $40 million investment, the beauty app maker joined a number of companies that already invested in cryptocurrency. A month ago, Tesla revealed the purchase of Bitcoin worth $1.5 billion in the annual SEC filing. Shortly after, Square and MicroStrategy increased their Bitcoin investments, with these companies buying 3,318 and 19,452 Bitcoins, respectively.
Despite the Bitcoin hype among institutional investors, Meitu’s investment in altcoin Ether is also substantial. However, it is not the only company that invested in crypto other than Bitcoin. For instance, Grayscale Investments also recently purchased altcoins, including Ether, Litecoin, and Stellar Lumens.