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Meitu Lost $17 Million On BTC But Gained $14.7M On Ether

Meitu lost $17 million on BTC as per the reports but with the ETH investments, it made up to $14.7 million despite the recent crypto downturn so let’s read more in our latest cryptocurrency news today.

Hong Kong Tech company Meitu lost $17 million on its BTC investment but on the upside, it made $14 million on its ETH holdings. The developer of the Photoshop-style apps spent a total of $100 million on BTC and ETH between April and March acquiring a total of 940 BTC for $49 million and 31,000 ETH for $50.5 million. According to an announcement from Meitu, the fair value of its BTC and ETH holdings is based on the market prices which is the final day of the company’s six-month interim results in accordance with the international financial reporting standards.

As of the end of the second quarter of June, Meitu’s BTC holdings represented $32 million, and its ETH represented $65 million which marked an overall $2.6 million drop from its initial $100 million investment. The company accounts crypto-assets as “intangible assets under the cost model” in the interim results and the BTC loss is expected to be recognized as an “impairment loss” while the gains won’t be seen as revaluation gain until such time. The interim results haven’t changed from the company’s bullish sentiments towards crypto:

“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 long-term views of the company, there are no plans to sell the same in the near future. The company also provided an updated fair value of the ETH and BTC holdings which reveals an overall $5.2 million gain on the initial investment with ETH representing $72 million and BTC to $32 million. Ethereum could gain even more if the “CrossaintETH” user is right with his prediction of why ETH is undervalued. Aside from the use cases of ETH in smart contracts, NFTs, and Decentralized finance as well as the upcoming EIP-1559 upgrade and 2.0 transition, the user-outlined the fact that 94 out of 100 Dapps are built on the Ethereum network:

“These protocols often have many further use cases involving $ETH, creating the fundamentals for the Web 3.0 economy.”

The user pointed to the stablecoins that utilize the Ethereum network citing Tether, USDC, TrueUSD, and MakerDAO as he emphasized their multi-billion market cap and outlined that USDC grew from $4 billion to $25 million market cap this year alone.

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Author: Stefan

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