Meitu Reports a $43M Impairment loss on Cryptocurrency Holdings in the First Half of 2022
- Reportedly, the Meitu App photo and video editor has accumulated over 1 billion users worldwide.
- As of June 2022, the company’s applications had more than 5.0 million active paying subscribers.
- While the cryptocurrency market remains volatile and way below its peak, Meitu said its digital assets holding will impact its net loss.
Meitu Inc. (Hong Kong: 1357), an investment holding company, has reported its interim results for the first six months of 2022. According to the announcement, revenue for the first half of 2022 grew by 20.5 percent YoY to around RMB 972.1 million.
The company reported that impairment losses on cryptocurrencies for the six months that ended on June 30, 2022, came in at approximately $43 million. Back in July, the company reported cryptocurrency holdings of approximately 940 BTC and 31,000 ETH. Reportedly, the company purchased the digital assets for around $100 million.
According to data provided by Coingecko, Meitu is ranked 10 among public companies holding Bitcoin. As of publication time, a total of 174,374.4658 BTC is held by 23 publicly traded companies from around the world.
Following the interim announcement of the first half of the year’s financial result, the Meitu stock market has gained approximately 1.19 percent to trade around HK$ 0.85.
However, the company’s stock market is down approximately 57% and 45 percent in the past year and YTD respectively, according to data provided by MarketWatch.
Meitu Market Outlook
Founded in October 2008, Meitu is an AI-driven technology company that focuses on the photo and video editing. Reportedly, the Meitu App photo and video editor has accumulated over 1 billion users worldwide.
Notably, the company reported its Monthly Active Users (“MAU”) growth resumed and reached 240.9 million in June 2022, 4.5 percent higher than that of December 2021.
Reportedly, the company’s VIP subscription business was the largest revenue contributor with RMB 339.2 million, thereby representing a 61.4 percent year-over-year growth in the first half of 2022.
As of June 2022, the company’s applications had more than 5.0 million active paying subscribers.
Forward, the comps disclosed that it expects its revenues to grow, mostly fueled by the VIP subscription sector.
The company announced that it will focus mostly on the beauty and image industry. Furthermore, it is an immense industry with huge potential from around the world.
While the cryptocurrency market remains volatile and way below its peak, Meitu said its digital assets holding will impact its net loss. Nevertheless, the company is bullish on the cryptocurrency market from a long-term perspective.
“The Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management,” Meitu previously said.
Side Notes
Meitu joins a list of public companies counting losses for introducing cryptocurrencies to their balance sheet in the past few years. For instance, MicroStrategy Inc. (NASDAQ: MSTR) has an unrealized loss of over $1 billion on its 129,699 Bitcoin holding.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
