• Thu. Feb 29th, 2024

Chinese Tech Giant Meitu has Reported 17M Loss on Bitcoin Holdings in the First Half of 2021

Christian Klausen

ByChristian Klausen

Aug 30, 2021

Crypto adoption is not only actual but is kicking in significant parts of the world too. Investors and traders have gotten a shine to withholding Bitcoin for the dedicated period of time and then chipping it in when the prices are touching the sky. The same is true with MicroStrategy, a BI (business intelligence) that has never ever chipped any of its bitcoin since it started acquiring them many years ago. Chinese beauty apps development company Meitu did invest a huge chunk of its investment into bitcoin earlier this year in terms of the H1 2021 bitcoin holding and has reported a skating loss of $17.3M in the first six months of making this investment. This might sound a little debilitating and saddening, but there are a lot of factors at play here.

Meitu has Invested Both in Bitcoin and Ethereum

The company did invest both into Bitcoin and Ethereum, but when the financial report came out, there were only losses mentioned due to Bitcoin’s price plummeting for the H1 2021, and these losses were fairly recognized as impairments. But the increase in Ethereum’s value overtime for the company didn’t end up on the revaluation gain, which was kind of off-putting because both were investments, and one scaling up could be documented as a helping hand to the other that blew up.

But the company has also subsequently issued a report in which it has mentioned that the impairment losses due to the bitcoin investment could end up in the revaluation gain segment as the financial year is not over yet, and the cryptocurrency could soar up once again, catching up to 31st December 2021. The second quarter for the bitcoin investment has been rough on the Meitu and Tesla, MicroStrategy, and The Brooker Group. All of these entities have reported dazzling losses. The overall situation is a bit tense as the US is embarking on a strict mission to issue regulations onto the crypto market. China is backing out on any crypto operations, including mining and such. The overall market cap is also in flux.

Christian Klausen

Christian Klausen

Christian Klausen is a talented news writer renowned for his compelling storytelling and comprehensive research. With a sharp eye for detail, his articles offer readers a thought-provoking and well-informed perspective on a wide range of current topics.

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