China's Meitu, a photo retouching app listed in Hong Kong, has announced it bought $40 million worth of Bitcoin and Ethereum cryptocurrencies, Bloomberg and Reuters reported Monday.
Shares of the Meitu climbed almost 15% following the news of its cryptocurrency acquisition.
It has become the latest company to invest in digital assets after Tesla's massive $1.5 billion investment in the crypto last month, which pushed the token's price to soar 20%.
Meitu has been listed on the Hong Kong Stock Exchange (HKEX) since 2016 and is the first publicly-listed Chinese company to disclose its crypto acquisition.
According to a Sunday filing, Meitu bought $22 million worth of ETH, the world's second-biggest cryptocurrency in terms of market valuation, and nearly $18 million worth of BTC on March 5.
Meitu's acquisitions are part of the company's broader plan to tap as much as $100 million of its cash reserve to fund crypto purchases and prepare to enter the blockchain industry because it is optimistic that prices had huge potential to grow and virtual assets could diversify its portfolio.
Meitu is also studying the feasibility of integrating blockchain technologies into its international businesses, which could include ventures on the Ethereum blockchain network.
The Chinese tech company's board of directors is positive that Bitcoin and Ether will perform well in the future.
"The board currently decided to invest in the two largest cryptocurrencies by market capitalization, which the board believes should enhance shareholder value in the long-term," BTC Peers quoted the board as saying.
Founded in 2008, Meitu is among the most well-known mobile apps in China with a market capitalization of $1.5 billion.
As of June last year, the company held 2.5 billion yuan ($385 million) in cash and liquid financial reserve and had almost 300 million self-reported monthly active users, according to The Block.
