Chinese Beauty App Meitu Warns of $52.3 Million Loss on Crypto Bets
Chinese photo touch-up app maker Meitu warned that it may record red ink of as much as 350 million yuan ($52.3 million) for the first half as a result of massive losses on investments in the cryptocurrencies bitcoin and ether.
The Xiamen, Fujian-based company expects total impairments of $46.5 million from bitcoin and ether holdings, the company disclosed. Meitu bought $22.1 million of ether and $17.9 million of bitcoin March 5, 2021, in the hope of reducing its risk from holding cash. Meitu increased its total crypto investment to $100 million in the following months.
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