Hong Kong-listed Meitu Inc. has capitalized on the recent cryptocurrency price surge by selling its entire holdings of Bitcoin and Ethereum, realizing a profit of $79.63 million (~¥571 million). The company announced that 80% of these proceeds will be distributed as special dividends to shareholders.
Meitu’s Strategic Cryptocurrency Exit
$80 Million Profit from Crypto Sales
Meitu began divesting its cryptocurrency assets in November 2024, completing the sale by December 4. The company offloaded:
- 31,000 Ethereum (ETH) for ~$100 million
- 940 Bitcoin (BTC) for ~$80 million
Originally purchased for $100 million** between 2021–2024, Meitu’s total proceeds reached **$180 million, yielding a $79.63 million profit (~¥571 million).
Market Reaction
Following the announcement on December 4, Meitu’s stock surged 9% in intraday trading on December 5, reflecting investor optimism about the company’s capital allocation strategy.
Dividend Payout: 80% to Shareholders
Meitu’s board approved a special dividend using 80% of the net proceeds (~¥456 million), equating to HK$0.109 per share, expected in mid-2025. The remaining 20% will fund core operations, particularly its subscription-based image and design software.
From Losses to Gains: Meitu’s Crypto Journey
- 2021–2023: Faced ¥285 million in impairment losses due to crypto market volatility.
- 2023 Recovery: Reversed ¥270 million in losses as Bitcoin and Ethereum rebounded.
- 2024 Windfall: The ¥571 million profit eclipsed Meitu’s combined 2022–2023 net profits (¥480 million).
Bitcoin Breaches $100,000 Amid Market Rally
The cryptocurrency market’s bull run accelerated in late 2024:
- Bitcoin (BTC): Surpassed $103,580 (up 160% YTD).
- Ethereum (ETH): Reached $3,892 (up 120% YTD).
Other Hong Kong Firms Riding the Crypto Wave
- Boyaa Interactive: Holds 3,183 BTC (~$329 million) and **14,445 ETH** (~$56 million), rebalancing its portfolio by swapping 14,200 ETH for 515 BTC in November 2024.
- Stock Surge: Boyaa’s shares jumped 18% on December 5.
FAQ: Key Questions Answered
1. Why did Meitu sell its cryptocurrency holdings?
Meitu seized the price peak to lock in profits and refocus on its core software business, while rewarding shareholders via dividends.
2. When will Meitu’s special dividend be paid?
Expected in June/July 2025, pending shareholder approval.
3. How does Meitu’s crypto profit compare to its past earnings?
The ¥571 million profit exceeds its 2022–2023 combined net income (¥480 million).
4. What’s driving Bitcoin’s price above $100,000?
Institutional adoption, spot ETF inflows, and macroeconomic factors (e.g., Fed rate cuts) fueled the rally.
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Final Thoughts
Meitu’s exit underscores a prudent profit-taking strategy amid crypto volatility, prioritizing shareholder returns. With Bitcoin’s upward momentum, other corporate holders like Boyaa may follow suit—or hold for further gains.