Meitu loses $17.3M on Bitcoin, gains $14.7M on Ether

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Meitu loses $17.3M on Bitcoin, gains $14.7M on Ether


Hong Kong tech company Meitu has taken a $17.3 million hit on its Bitcoin (BTC) holdings — but on the upside, its Ether (ETH) holdings have gained $14.7 million.

The developer of popular Photoshop-style apps spent a total of $100 million on BTC and ETH between March and April this year, acquiring a total of 940.89 BTC for $49.5 million, and 31,000 ETH for $50.5 million.

According to a June 6 voluntary announcement from Meitu, the fair value of its BTC and ETH holdings is based on the market prices as of June 30, which is the final day of the firm's six-month interim results, in accordance with International Financial Reporting Standards.

As of the end of the second quarter on June 30, Meitu’s BTC holdings represented $32.2 million and its ETH represented $65.2 million, marking an overall $2.6 million decrease from its initial $100 million investment.

The firm accounts crypto-assets as “intangible assets under the cost model” in the interim results, and the BTC loss is expected to be recognized as “impairment loss”, while the ETH gains will not be recognized as “revaluation gain” until such time as it is sold.

The interim results have not changed the firm's bullish sentiments towards crypto, with the announcement reiterating:

“The Board believes that the blockchain industry is still in its early stage and that cryptocurrencies have ample room for appreciation in value over the long-term.”
The report stated that due to the firm's long-term view “there are currently no plans to sell the same in the near future.”

Interestingly, the firm also provided an updated fair value of its ETH and BTC holdings as of July 6, which reveals an overall $5.2 million gain on its initial investment, with ETH representing $72.4 million, and BTC up slightly to $32.8 million.

https://cointelegraph.com/news/meitu-loses-17-3m-on-bitcoin-gains-14-7m-on-ether