Tag: Meitu

Beauty App Meitu’s Crypto Holdings Evaporated Up to $50m in H1

by Blockchain News

Meitu, a Hong Kong-listed (3152.HK) beauty app company known for its AI-driven photo-editing and video-sharing solutions, recorded a net loss between $41.1 million and $52.3 million in the first half of this year amid the bloodbath experienced of the crypto market.

In a filing proposed to the Hong Kong Stock Exchange last Friday, the firm acknowledged that “the expected increase in net loss is primarily due to the acquired cryptocurrencies impairment”. Per the report:

“It is expected that the group may record a net loss of between approximately RMB 274.9 million and RMB 349.9 million for the six months ended June 30, 2022.”

Meitu acquired nearly 940.89 Bitcoin (BTC) and 31,000 ether (ETH) between March 7 and April 8, 2021, at approximately $49.5 million and $50.5 million, respectively, but these holdings remained without selling.

The filing also reads:

“Since the cryptocurrencies acquisitions, the group has neither acquired nor sold any cryptocurrencies pursuant to the Cryptocurrency Investment Plan (including any Ether or Bitcoin).”

“As of June 30, 2022, the fair values of the Acquired Ether and the Acquired Bitcoin determined based on the then prevailing market prices were approximately US$32.0 million and US$18.0 million, respectively,” the report added.

Subject to the devaluation amid the recent crypto winter, the loss is estimated at about 50%, and the book loss is as high as $50 million compared with the previous purchase price.

The Chinese Xiamen-based beauty app pointed out that the crypto market was volatile in the near term because prices were subject to fluctuations.

The meltdown in the cryptocurrency market has been heightened by tightened macroeconomic factors and unforeseen circumstances like the invasion of Ukraine by Russia and the collapse of UST and LUNA tokens.

As a result, Bitcoin has shed at least 70% of its value from the all-time high (ATH) price of $69,000 recorded in November 2021.

Furthermore, the non-fungible token (NFT) sector has also not been spared because sales recently slipped to a 12-month low. 

Image source: Shutterstock

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Beauty App Meitu’s Crypto Holdings Evaporated Up to $52.3m in H1

by Blockchain News

Meitu, a Hong Kong-listed (3152.HK) beauty app company known for its AI-driven photo-editing and video-sharing solutions, recorded a net loss between $41.1 million and $52.3 million in the first half of this year amid the bloodbath experienced in the crypto market.

In a filing proposed to the Hong Kong Stock Exchange last Friday, the firm acknowledged that “the expected increase in net loss is primarily due to the acquired cryptocurrencies impairment”. Per the report:

“It is expected that the group may record a net loss of between approximately RMB 274.9 million and RMB 349.9 million for the six months ended June 30, 2022.”

Meitu acquired nearly 940.89 Bitcoin (BTC) and 31,000 ether (ETH) between March 7 and April 8, 2021, at approximately $49.5 million and $50.5 million, respectively, but these holdings have remained intact ever since.

The filing also reads:

“Since the cryptocurrencies acquisitions, the group has neither acquired nor sold any cryptocurrencies pursuant to the Cryptocurrency Investment Plan (including any Ether or Bitcoin).”

“As of June 30, 2022, the fair values of the Acquired Ether and the Acquired Bitcoin determined based on the then prevailing market prices were approximately US$32.0 million and US$18.0 million, respectively,” the report added.

The Chinese Xiamen-based beauty app pointed out that the crypto market was volatile in the near term because prices were subject to fluctuations.

The meltdown in the cryptocurrency market has been heightened by tightened macroeconomic factors and unforeseen circumstances like the invasion of Ukraine by Russia and the collapse of UST and LUNA tokens.

As a result, Bitcoin has shed at least 70% of its value from the all-time high (ATH) price of $69,000 recorded in November 2021.

Furthermore, the non-fungible token (NFT) sector has also not been spared because sales recently slipped to a 12-month low. 

Image source: Shutterstock

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Record $900 million month for NFT sales as CryptoPunks go stratospheric

by Cointelegraph

August is shaping up to be a record month for nonfungible token sales with almost $900 million spent on them over the past 30 days.

According to data from the tracking portal Nonfungible, $896 million has been spent on NFTs over the past 30 days. The number is very likely to exceed $900 million by the end of the month marking a new record for the burgeoning industry.

The number is more than triple the previous best month for NFT sales in May when $255 million were sold. August has seen sales skyrocket and it has been largely down to CryptoPunks and Axie Infinity.

NFT sales in USD, past 30 days – nonfungible.com

According to Cryptoslam, a record $397 million in CryptoPunk sales have occurred so far this month. The average sale price for the pixelated punks is a whopping $214,000. One of the most expensive ones ever sold was number 7523, a rare alien punk wearing a face mask that went for a whopping $11.5 million in a Sotheby’s auction in June.

Earlier this week, credit card giant Visa announced that it had purchased its own CryptoPunk for 49.5 ETH, worth just under $150,000 at the time of purchase. Head of crypto at Visa Cuy Sheffield said:

“With our CryptoPunk purchase, we’re jumping in feet first. This is just the beginning of our work in this space.”

Chinese industry outlet Wu Blockchain reported that Chinese investors are buying up CryptoPunks like proverbial hotcakes. Cai Wensheng, the founder of smartphone software firm Meitu, splashed out on CryptoPunk 8236 with 125 ETH, roughly $387,000.

Meitu was one of the first publicly traded companies in China to bet big on cryptocurrencies, purchasing $100 million in Bitcoin and Ethereum earlier this year.

Related: Clever user makes $80K profit in CryptoPunk ‘smash and grab’

NFT’s have also been driving the adoption of the staking cryptocurrency Tezos. According to a blog post earlier this year, Tezos NFT platforms have proven to be attractive for artists due to low transaction fees and a more energy-efficient proof-of-stake consensus mechanism favored by eco-conscious artists.

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Meitu loses $17.3M on Bitcoin, gains $14.7M on Ether

by Cointelegraph

Hong Kong tech company Meitu has taken a $17.3 million hit on its Bitcoin (BTC) holdings — but on the upside, its Ether (ETH) holdings have gained $14.7 million.

The developer of popular Photoshop-style apps spent a total of $100 million on BTC and ETH between March and April this year, acquiring a total of 940.89 BTC for $49.5 million, and 31,000 ETH for $50.5 million.

According to a June 6 voluntary announcement from Meitu, the fair value of its BTC and ETH holdings is based on the market prices as of June 30, which is the final day of the firm’s six-month interim results, in accordance with International Financial Reporting Standards.

As of the end of the second quarter on June 30, Meitu’s BTC holdings represented $32.2 million and its ETH represented $65.2 million, marking an overall $2.6 million decrease from its initial $100 million investment.

The firm accounts crypto-assets as “intangible assets under the cost model” in the interim results, and the BTC loss is expected to be recognized as “impairment loss”, while the ETH gains will not be recognized as “revaluation gain” until such time as it is sold.

The interim results have not changed the firm’s bullish sentiments towards crypto, with the announcement reiterating:

“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 firm’s long-term view “there are currently no plans to sell the same in the near future.”

Interestingly, the firm also provided an updated fair value of its ETH and BTC holdings as of July 6, which reveals an overall $5.2 million gain on its initial investment, with ETH representing $72.4 million, and BTC up slightly to $32.8 million.

Related: Ether already ‘flippening’ Bitcoin, says Celsius CEO

Ethereum could gain even more if popular Crypto Twitter account “CroissantEth” is right with his thread containing 24 reasons why ETH is undervalued.

Aside from the obvious use cases of ETH in smart contracts, decentralized finance and NFTs, and the upcoming EIP-1159 upgrade and eventual transition to ETH 2.0, Croissant highlighted the fact that 94 out of the top 100 decentralized apps 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,” he said.

Croissant also points to the stablecoins that utilize the Ethereum network, citing Tether (USDT), USD Coin (USDC), MakerDao (DAI), and TrueUSD (TUSD), as he emphasized their multi-billion market caps, and highlighted that USDC grew from a $4 billion market cap to $25 billion this year.

The Metaverse, gaming, and digital land also get notable mentions as he cites their massive growth potential, along with layer-two solutions, decentralized autonomous organizations to name a few.