Chinese Tech Firm Meitu to Cut Losses on Bitcoin and Ethereum
In a strategic move driven by financial losses incurred due to cryptocurrency investments, Chinese tech company Meitu has decided to divest its entire cryptocurrency portfolio, redirecting its capital towards the thriving field of artificial intelligence (AI). This decision comes in the wake of substantial losses on their cryptocurrency holdings amidst a macroeconomic downturn in the crypto market.
Back in March 2021, Meitu invested a hefty $100 million to acquire 31,000 ETH and 940.89 BTC. However, given the current market conditions, the company is grappling with approximately $24.76 million in losses attributed to the cryptocurrency market’s significant fluctuations influenced by macroeconomic factors.
Kang Yikong, Meitu’s Senior Investor Relations Manager, has confirmed that the company has no intentions of further bolstering its crypto holdings. Instead, Meitu plans to gradually liquidate its Bitcoin and Ethereum assets at an opportune moment, reallocating these resources into the promising field of artificial intelligence. The AI sector has proven to be a lucrative revenue stream for Meitu, propelling the company’s rapid growth and providing stability in the face of the prevailing economic uncertainties.
Recently, Meitu introduced MiracleVision 3.0, an AI solution tailored for the company’s video design applications. Kang Yikong believes that artificial intelligence will be the cornerstone of Meitu’s sustainable growth. By embracing AI technology, Meitu aims to consolidate its position as an industry leader and pioneer in harnessing the power of AI for innovative applications.
In the midst of global economic instability, many companies are increasingly looking to cut costs and reduce their workforce. Meitu, on the other hand, is striving to provide effective alternatives to traditional marketing approaches. The surge in registrations for Meitu Design Studio demonstrates a growing trend among businesses, with a preference for utilizing AI over traditional models or production teams for their advertising and marketing endeavors.
- Two New Competitors Of Friend.Tech Surpass $1 Million In TVL
- Bitcoin (BTC) Price Breaks Out Strongly, How High Can It Rise?