Due to financial losses incurred by crypto investments, Chinese tech giant Meitu has decided to divest its entire crypto portfolio. The decision comes after the company suffered significant losses due to the continuous decline of the crypto market. Meitu will redirect its capital towards the rapidly growing field of artificial intelligence (AI).
In March 2021, Meitu invested $100 million to buy 31,000 ETH and 940.89 BTC. However, due to crypto market fluctuations and the macroeconomic situation, the company faced a loss of approximately $24.76 million.
Kang Yikong, Meitu’s Senior Investor Relations Manager, has confirmed that the company has no intention of holding cryptocurrencies. They are open to selling its crypto holdings at the right time and will reinvest this capital into the promising field of artificial intelligence. AI is expected to contribute significantly to the company’s profits, helping it grow rapidly and remain stable amid the current unstable economy.
Founded in 2008, Meitu is one of the most popular technology companies in China with a market capitalization of $2 billion.