In a strategic move that marks the end of a three-year journey into the world of digital assets, Meitu — the Hong Kong-listed company best known for its popular photo-editing app MeituPic — has fully exited its cryptocurrency investments. The company has sold off its entire holdings of Bitcoin and Ethereum just before Bitcoin surged toward the $100,000 milestone, locking in a net profit of nearly **$79.63 million**.
This decisive divestment reflects a broader shift in corporate strategy, as Meitu pivots back to its core business: image and design software powered by a subscription-based model. The move not only strengthens its financial position but also signals a cautious stance toward volatile digital assets despite the current market euphoria.
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Strategic Exit at Market Peak
According to an official filing released on December 4, 2024, Meitu began selling its crypto portfolio in November and successfully liquidated all remaining assets by early December. The company disposed of 940 Bitcoin and 31,000 Ethereum, generating total cash proceeds of approximately $80 million** from Bitcoin and **$100 million from Ethereum.
After accounting for acquisition costs, the net gain from these sales amounted to $79.63 million. This windfall comes at a pivotal time for the company, providing a significant cash infusion that will directly benefit shareholders and support future growth initiatives.
The timing of the sale is particularly noteworthy. Bitcoin had been gaining strong upward momentum, approaching record highs, yet Meitu chose to exit before the psychological $100,000 threshold was breached. This decision underscores a disciplined financial approach — prioritizing realized gains over speculative holding.
A Volatile Three-Year Crypto Journey
Meitu first entered the cryptocurrency market in 2021, when it announced a bold $100 million investment in Bitcoin and Ethereum. At the time, this move positioned Meitu among a wave of publicly traded companies — including Tesla and MicroStrategy — embracing digital assets as part of their treasury strategies.
However, unlike firms that held through market downturns, Meitu experienced significant turbulence. The subsequent bear market in 2022 severely impacted the valuation of its holdings. In July 2022, the company warned investors that its first-half losses could widen by as much as 154%, largely due to unrealized losses on its crypto portfolio.
This volatility highlighted the risks of integrating high-fluctuation assets into a traditional tech company’s balance sheet — especially one rooted in consumer software rather than financial services.
Despite these challenges, Meitu maintained its positions through the downturn. Its patience paid off as markets recovered in 2023 and 2024, allowing the company to exit profitably and turn a previous liability into a substantial gain.
Capital Return and Business Reinvention
With the crypto divestment complete, Meitu is now redirecting capital toward shareholder value and core business development. The company plans to allocate approximately 80% of the net proceeds from the sale toward a special cash dividend.
Shareholders can expect a special dividend of around HK$0.109 per share, expected to be distributed in June to July 2025. This one-time payout serves as a direct reward for investor confidence during a period of strategic uncertainty.
The remaining 20% of profits will be retained as general working capital to accelerate growth in Meitu’s subscription-based offerings. These include premium features in its flagship apps such as advanced editing tools, AI-powered design functions, and cloud-based creative suites tailored for both casual users and professional designers.
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Focusing on Core Strengths: AI and Subscription Growth
Going forward, Meitu will sharpen its focus on AI-driven imaging technology and digital design innovation. The company has already made significant strides in integrating artificial intelligence into its products, offering features like automatic skin smoothing, background replacement, and style transfer powered by machine learning.
Its transition from a free-to-use app to a freemium subscription model has been key to improving revenue stability. By offering tiered access to advanced tools, Meitu has cultivated a growing base of paying users — a trend it aims to expand globally.
The capital injection from the crypto sale provides runway to enhance R&D, scale marketing efforts, and explore new markets — particularly in Southeast Asia and India, where demand for mobile-first creative tools continues to rise.
What This Means for Corporate Crypto Exposure
Meitu’s exit raises important questions about the role of cryptocurrency in corporate treasury management. While some companies continue to hold or even increase their Bitcoin reserves as a hedge against inflation or monetary devaluation, others like Meitu are choosing to lock in gains and return to fundamentals.
This decision may inspire other firms with similar digital asset positions to evaluate their own risk-reward balance — especially in times of market peaks.
For investors, Meitu’s strategy demonstrates a pragmatic approach: enter with conviction, endure short-term volatility, and exit with discipline. It’s a lesson in financial stewardship that prioritizes long-term sustainability over speculative trends.
Frequently Asked Questions (FAQ)
Why did Meitu sell all its Bitcoin and Ethereum?
Meitu sold its entire cryptocurrency portfolio to realize profits and refocus on its core business of AI-powered image and design software. The company aims to strengthen its financial foundation by returning capital to shareholders and investing in product innovation.
How much profit did Meitu make from selling crypto?
After selling 940 Bitcoin and 31,000 Ethereum, Meitu earned a net profit of **$79.63 million**, following cash proceeds of around $180 million from the sales.
Will Meitu invest in crypto again in the future?
According to its official statement, Meitu no longer holds any Bitcoin or Ethereum. There is no indication of future crypto investments, as the company plans to concentrate on its subscription-based digital product ecosystem.
What will Meitu do with the money from the crypto sale?
Approximately 80% of the net proceeds will fund a special cash dividend (about HK$0.109 per share), with the remaining 20% used as working capital to grow its imaging and design business.
Is selling crypto before a price peak a smart move?
While Bitcoin was approaching $100,000, Meitu’s choice to sell reflects risk management rather than market timing. For non-financial firms, securing profits can be more valuable than betting on further price increases.
How does this affect Meitu’s stock performance?
The profit-taking and planned dividend distribution are likely to boost investor confidence. A clear strategic focus on core tech products may improve long-term valuation stability.
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Conclusion
Meitu’s three-year foray into cryptocurrency has come to a close — not with a loss, but with a nearly $80 million profit and renewed strategic clarity. By exiting at a moment of market strength, the company has demonstrated fiscal responsibility and a commitment to sustainable growth.
The proceeds will now fuel shareholder returns and advance its vision of becoming a global leader in AI-enhanced creative software. As the digital economy evolves, Meitu’s story serves as a case study in balancing innovation with financial prudence.
For businesses eyeing crypto investments, the takeaway is clear: define your purpose, set clear exit criteria, and never lose sight of your core mission.