In a surprising yet strategic financial move, Meitu—a company widely known for its photo-editing apps—has made headlines by cashing out its cryptocurrency holdings for a staggering profit of approximately 5.71 billion RMB (about $800 million USD). This windfall not only surpasses the company’s total net profit of 3.78 billion RMB in the previous year but also highlights how non-traditional revenue streams can significantly impact a tech firm's financial health.
This article explores how Meitu leveraged its early bet on digital assets, the market conditions that amplified its gains, and how it plans to reinvest these profits into its core AI-powered creative software business.
👉 Discover how companies are turning crypto gains into long-term growth strategies.
A Bold Move into Digital Assets
Back in 2021, Meitu made history by becoming the first Hong Kong-listed company to publicly allocate capital toward cryptocurrency as part of its treasury strategy. At the time, the company purchased roughly 31,000 units of Ethereum (ETH) and 940 units of Bitcoin (BTC), spending approximately $50.5 million on ETH and $49.5 million on BTC.
This bold decision was championed by蔡文胜 (Cai Wensheng), Meitu’s chairman, who famously declared on social media:
“Someone has to be the first to eat the crab. This is likely the first Hong Kong-listed company to buy Bitcoin—and globally, perhaps the first to treat Ethereum as a reserve of monetary value.”
While controversial at the time, this move positioned Meitu at the forefront of corporate adoption of blockchain-based assets.
Market Volatility: The Rollercoaster Ride
The journey wasn’t smooth. In 2022, the global crypto market plunged into a severe bear market. Both Bitcoin and Ethereum saw dramatic price drops, impacting Meitu’s balance sheet.
According to its 2022 interim report:
- The fair value of its crypto holdings dropped by around 1.12 billion RMB.
- Impairment losses amounted to 866 million RMB for Ethereum and 1.982 billion RMB for Bitcoin.
For a period, the investment appeared risky—even questionable. However, Meitu held firm through the downturn. By the first half of 2023, market recovery allowed the company to reverse impairment losses by about 1.85 billion RMB, signaling a turnaround.
Fast forward to late 2024, and favorable macroeconomic conditions—particularly the election of Donald Trump and his pro-crypto policy stance—spurred a massive rally in digital asset prices.
Bitcoin surged past key milestones:
- $70,000 on November 6
- $80,000 on November 10
- $90,000 on November 16
- Nearly $99,000 on November 22
On December 4, 2024, Meitu announced it had fully liquidated all its Bitcoin and Ethereum holdings. The sale brought in total proceeds of approximately $100 million for ETH** and **$80 million for BTC, translating into a net gain of 5.71 billion RMB.
Just one day later, on December 5, Bitcoin briefly crossed $103,000, validating just how close to the peak Meitu timed its exit.
Strategic Exit at Peak Value
Selling at or near market highs is every investor’s dream—and Meitu achieved it. But more importantly, the company demonstrated financial discipline by locking in profits rather than speculating further.
As stated in its official announcement:
“Following the completion of the cryptocurrency sale, the Group no longer holds any Ethereum or Bitcoin.”
This clear exit strategy reflects a mature approach to risk management. Rather than chasing endless gains, Meitu chose to convert volatile digital assets into stable capital that could support long-term business development.
👉 Learn how smart exits can fuel sustainable business growth.
Reinvesting Gains into Core Innovation
With such a significant profit secured, the question became: Where does the money go?
Meitu’s board revealed a two-pronged plan:
- Approximately 80% of the net proceeds will be distributed as a special dividend to reward shareholders.
- The remaining 20% will serve as general working capital, primarily aimed at expanding its subscription-based image and design products.
This reinvestment aligns perfectly with Meitu’s evolving business model—one increasingly driven by artificial intelligence and user subscriptions.
Growth in AI-Powered Creative Tools
Meitu’s core product line—centered around apps like MeituPic, Wink, and PosterLad—has transitioned from free tools to premium, AI-enhanced services offered under a paid subscription model.
Key performance indicators highlight strong momentum:
- 2023 revenue: 13.3 billion RMB (+52.8% YoY)
- H1 2024 revenue: 9.3 billion RMB (+54.5% YoY), accounting for 57.4% of total income
- R&D spending in H1 2024: 4.25 billion RMB (+44.52% YoY)
- Over 83% of daily image/video processing uses AI features
- 10.81 million paying subscribers (record high), with a penetration rate of 4.2%
- 258 million monthly active users (MAUs) (+4.3% YoY)
These figures underscore a successful pivot toward high-margin, recurring revenue streams powered by generative AI.
AI Strategy: Applications Over Infrastructure
Unlike some tech giants racing to build foundational AI models, Meitu has taken a pragmatic approach.
Founder, Chairman, and CEO Wu Xinhong emphasized:
“Engaging in an AI model arms race isn’t our core strategy. We’ll maintain application competitiveness while controlling model investment.”
He noted that competing head-on in video large models would mean going up against global titans—an unsustainable path for a niche player.
Instead, Meitu embraces the philosophy:
“Models are applications—that’s the trend.”
Observing that many Chinese AI companies are shifting toward end-user applications, Wu believes the real market opportunity lies not in building models, but in deploying them effectively at scale. He estimates the application layer offers ten times more market potential than the model layer itself.
This lean, application-first strategy allows Meitu to innovate rapidly without burning cash on costly infrastructure.
Market Reaction and Future Outlook
News of the crypto sale positively impacted investor sentiment. On December 5, Meitu’s stock rose 6.29%, closing at 3.04 HKD, with its market capitalization reaching 13.787 billion HKD.
The successful monetization of its digital assets provides both short-term rewards and long-term strategic flexibility.
Frequently Asked Questions (FAQ)
Q: Did Meitu make more from crypto than from its main business?
A: Yes—its crypto profit of 5.71 billion RMB exceeded its full-year net profit of 3.78 billion RMB in 2023. However, this was a one-time gain, whereas its core subscription business delivers consistent, growing revenue.
Q: Why did Meitu decide to sell all its crypto holdings?
A: The company likely saw record-high prices as an optimal exit point. Converting volatile assets into stable capital supports sustainable growth in its primary AI and software operations.
Q: Is Meitu still involved in blockchain or crypto projects?
A: As of December 2024, Meitu holds no Bitcoin or Ethereum. There is no public indication of future crypto investments, suggesting a return to focus on core tech development.
Q: How does AI contribute to Meitu’s products today?
A: Over 83% of daily user interactions involve AI features such as portrait enhancement, background removal, style transfer, and AI-generated content—driving engagement and conversion to paid plans.
Q: Could other companies follow Meitu’s crypto investment model?
A: While possible, regulatory scrutiny and market volatility make such moves risky. Meitu’s case benefited from precise timing and favorable external factors like political shifts boosting crypto sentiment.
Q: What’s next for Meitu after this windfall?
A: Expansion of its paid subscription ecosystem, deeper integration of AI tools, and continued innovation in visual creativity apps—with potential international growth on the horizon.
👉 See how emerging technologies are reshaping digital creativity platforms.
Final Thoughts
Meitu’s cryptocurrency journey exemplifies how forward-thinking financial decisions can amplify a company’s value—even outside its core domain. From being labeled “off-track” for investing in digital assets, it emerged as a case study in strategic foresight and disciplined execution.
Now, with fresh capital and a thriving AI-powered product suite, Meitu is better positioned than ever to dominate the global visual content creation space.
Its story serves as a reminder: sometimes, the most impactful innovations come not just from what you build—but how wisely you invest along the way.
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