Investing.com-- Shares of Chinese app operator Meitu Inc (HK:1357) jumped on Thursday after the company sold its entire cryptocurrency holdings, worth $180 million, to capitalize on the recent rally in digital assets.
The company disclosed that it sold 31,000 units of Ethereum and 940 units of Bitcoin, purchased in 2021. This transaction yielded substantial gains of about $80 million, Meitu announced on Wednesday.
Following the announcement, Meitu’s Hong Kong listed stock climbed as much as 4% to HK$3.12 on Thursday.
The sale was announced just ahead of bitcoin’s milestone surge past $100,000 on Thursday. Bitcoin is trading up around 140% so far in 2024, with a bulk of its gains coming in November after Donald Trump’s presidential election victory.
Meitu is one of the few Hong Kong-listed firms to openly disclose its cryptocurrency investments.
The company's board announced plans to allocate about 80% of the net proceeds from this sale to pay a special dividend, equating to HK$0.109 per share.
With the rest of the proceeds, Meitu aims to invest further in its photo, video and design products business, which has a premium subscription model.