Hong Kong-based technology company Meitu reported a loss of $ 17.3 million from Bitcoin (BTC), while mitigating this loss from another altcoin project. Explaining that it clings to the markets with the profit/loss ratio between the two assets, the company gives details about its investment. We’re reviewing the report with crypto tracker Brian Quarmby…
Meitu gained what he lost from Bitcoin (BTC) in this altcoin project
The company announced a loss of $17.3 million from Bitcoin (BTC), while it earned $14.7 million from Ethereum (ETH). The company, which is the developer of Photoshop-style applications, announced that it spent a total of $ 100 million on BTC and ETH between March and April this year, and purchased 940.89 BTC for a total of $ 49.5 million and 31,000 ETH for $ 50.5 million.
Cryptocoin. com, according to the technology company’s voluntary announcement on Tuesday, the fair value of BTC and ETH assets is based on market prices as of June 30, the last day of the firm’s six-month interim results according to International Financial Reporting Standards. The investment rates are as follows…
How much has the company invested in Bitcoin and Ethereum?
As of the end of the second quarter on June 30, Meitu’s BTC holdings were worth $32.2 million and their ETH totaled $65.2 million, according to the data. Meitu suffered a total loss of $2.6 million from the initial $100 million investment.
At the same time, the Firm calculates crypto assets as “digital assets under the cost model” in the interim results and a loss of BTC is expected to be considered a “depreciation”, while ETH gains will not be considered “revaluation gains” until sold. Additionally, with the iteration of the announcement, the firm’s bullish sentiment towards crypto has not changed. The company makes a statement as follows:
The Board believes that the blockchain industry is still in its early stages and that cryptocurrencies have ample room for them to gain value over the long term.
Meitu states that he is thinking long term
The firm stated in the report that it “currently has no plans to sell in the near future” due to its long-term outlook. Interestingly, Meitu also shared the current value of ETH and BTC holdings as of Tuesday. Announcing a total gain of $5.2 million on its initial investment, the company added that profit also rose to $72.4 million for ETH and slightly to $32.8 million for BTC.
Additionally, an analysis that will sell Meitu gratuitously came as popular crypto Twitter account CroissantEth claimed that Ether could be valued even more, with a tweet “24 reasons why ETH is undervalued”. You can find the series here:
Analyst gives positive signals for the future of Ethereum
Communicating the potentials of 24 items of ETH, CroissantEth has 94 of the top 100 decentralized apps, alongside the use cases of ETH in smart contracts (decentralized finance and immutable tokens) and the upcoming EIP-1559 upgrade and eventual transition to ETH 2.0. He underlined the fact that . The analyst also explains:
These protocols often have many other use cases, including ETH, which underpins Web 3.0.
CroissantEth also noted that stablecoins make the Ethereum network functional, while highlighting the multi-billion dollar market caps of USDT, USDC and TUSD. Finally, the analyst added that USDC has increased from a market cap of $4 billion to $25 billion this year.