- Smartphone and app maker Meitu this month plugged $90 million into Bitcoin and Ethereum.
- The Chinese language firm selected Coinbase to handle the purchase.
- Coinbase Institutional has been chosen by different corporations to deal with crypto investments.
Coinbase Institutional, the wing of the cryptocurrency trade that handles transactions for corporations, right this moment introduced that it has custody of the $90 million Bitcoin and Ethereum snapped up by Chinese language tech firm Meitu this month.
Meitu, which makes smartphones and selfie apps, spent $22 million on and $17.9 million on in the beginning of March earlier than buying an additional $28.4 million Ethereum and $21.6 million Bitcoin two weeks later.
The Fujian-based firm stated it made the purchase as a result of it believes the cryptocurrencies “have ample room for appreciation in worth” and that the cash would function an alternative choice to money.
Coinbase Institutional stated in an announcement that it was chosen by Meitu as the only accomplice to handle the purchase after which retailer the belongings. Coinbase has been chosen by different huge corporations—together with enterprise intelligence agency MicroStrategy—to handle Bitcoin storage.
“Meitu joins a protracted record of corporations that Coinbase Institutional continues to assist diversify with crypto together with Microstrategy and different firms,” the corporate stated. “Nonetheless, Meitu has made a novel case, not seen extensively but, on allocating a good portion to ETH.”
Meitu is the newest establishment to allocate giant funds to crypto. MicroStrategy was the primary and now holds greater than $5 billion in Bitcoin. It has since been adopted by funds firm Sq., which has plugged $220 million within the foreign money previously yr.
And Elon Musk’s automotive firm, Tesla, completed a $1.5 billion Bitcoin purchase in February.
However regardless of becoming a member of huge establishments in investing in various belongings, Meitu acknowledged the dangers concerned, saying on the time that “cryptocurrency costs on the whole are nonetheless extremely risky.”
Meitu, based in 2008, is finest identified for its selfie app software program which helps make “everybody grow to be lovely simply,” in line with the corporate web site.
It launched Hong Kong’s greatest preliminary public providing in years in 2016 when it listed on the inventory trade.