Meitu's Crypto Asset Sale: A Strategic Exit at Bitcoin's Peak

The cryptocurrency market witnessed a significant move as Meitu (1357.HK), a Chinese technology company, announced its complete exit from digital assets just as Bitcoin reached $100,000. This strategic timing demonstrates the company’s sharp market acumen, having first entered the crypto space in March 2021.

When Meitu initially invested $100 million in cryptocurrencies, it represented a bold move for a Hong Kong-listed company. The purchase included 31,000 Ethereum tokens at approximately $1,629 each and 940 Bitcoin at $52,610 per coin. Despite enduring a 70% drawdown during the 2022 crypto winter, when Bitcoin plunged to $15,500, Meitu held its position.

The company’s investment thesis was rooted in cryptocurrency serving as a hedge against inflation caused by aggressive central bank monetary policies. It also aimed to demonstrate the company’s commitment to technological innovation and blockchain adoption. Wu Xinhong, Meitu’s founder and CEO, notably declared this investment made them the first Hong Kong-listed company to hold Bitcoin as a treasury asset.

What makes this exit particularly noteworthy is its timing. Meitu began liquidating its positions in November 2024, completing the sale by December 4th when Bitcoin was approaching historic highs. The company’s board has proposed using 80% of the profits for special dividends, with the remainder allocated to expanding their core subscription-based imaging and design business.

The financial impact is substantial - from a $100 million investment, Meitu generated a profit of $57.1 million (approximately RMB 571 million). This represents a return that significantly outperforms traditional investments over the same period.

This case highlights several key aspects of institutional cryptocurrency investment. First, it demonstrates the importance of strong risk management and patience during market downturns. Second, it shows how traditional companies can successfully integrate digital assets into their treasury strategies. Finally, it underscores the value of having a clear exit strategy and the discipline to execute it.

For the broader crypto market, Meitu’s exit at these price levels may signal a peak in institutional interest. Their successful navigation of the crypto market cycle, from buying during uncertainty to selling into strength, provides a template for other corporate investors considering similar strategies.

Looking ahead, Meitu plans to focus on its core business of subscription-based imaging and design products, having proven its capability to manage large-scale cryptocurrency investments successfully. Their experience shows that with proper strategy and patience, traditional companies can effectively participate in and profit from the cryptocurrency market.