Meitu Inc crypto bets steepened losses and made shares of the company slide.
Founded in October 2008, Meitu is an AI-driven technology company that carries “beauty” as its core ideal, helping its users become more beautiful with image products and beauty management services. The company diversified its portfolio by purchasing 31,000 Ether and about 940 Bitcoin in March and April last year.
2021 was an exceptional year for crypto assets—they fueled the total cryptocurrency market capitalization to grow 185%, from $773 billion to $2.2 trillion. Unfortunately, however, the whole market has tumbled this year. Ether has plunged over 70%, while Bitcoin is down nearly 60%.
Meitu is among many companies holding cryptocurrencies that suffer from the bearish trend, especially since its value is still falling. However, the photo touch-up app maker has been hit harder since it bet heavily on crypto. Shares are down nearly 40% this year. On July 3, the company announced on the Hong Kong Stock Exchange that the net loss might reach about $41 million to $52 million, compared with the $45.6 million crypto impairment, which the firm cites as the primary reason for the worsening earnings.