Beyond Bitcoin: China's Publicly-Listed Beauty App Meitu Buys $22M Ethereum

Fujian-based beauty app Meitu, which is publicly listed in Hong Kong, said it has purchased 15,000 units of Ethereum (ETH) on Sunday.

What Happened: The company’s cryptocurrency purchase is worth $25.98 million as of press time, when ETH traded 4.28% higher at $1727.92.

Additionally, the company said it also purchased 379.1214267 units of Bitcoin BTC/USD, worth $18.96 million, as of press time when BTC traded 1.43% higher at $50,011.39.

Meitu’s ETH and BTC purchases were made at an aggregate consideration of nearly US$22.1 million and US$17.9 million respectively.

See also: How to Buy Bitcoin (BTC)

Why It Matters: ETH could be headed for another sharp price spike as developers have agreed to move ahead with an update that would lead to a reduction in the number of tokens in use.

Meitu can make a net purchase of up to $100 million worth of cryptocurrencies under an investment plan previously approved by its board of directors, the company said. 

Meitu's ETH investment marks for the first time, a publicly-listed company has announced a major purchase of the second-largest cryptocurrency by market cap, reported CoinDesk.

Previously, some large companies have announced BTC investments.

In February, Jack Dorsey-led Square Inc SQ bought 3,318 BTC worth $170 million after first pumping in $50 million into BTC last October.

See also: How to Buy Ethereum (ETH)

Elon Musk’s Tesla Inc TSLA also purchased $1.5 billion worth of BTC.

The biggest bull among listed companies so far has been Michael Saylor’s MicroStrategy Incorporated MSTR, which owns 90,531 BTC, as of late February, acquired at an average purchase price of $2.171 billion.