Meitu Records $14.7M Gains From Ethereum, Loses $17.3M In Bitcoin
Hong Kong company Meitu in an announcement on July 6 released the returns on its crypto assets; Bitcoin and Ethereum. The announcement made references to previous announcements from the company. These announcements consisted of those made when the company purchased its digital assets.
Back in March and April, Meitu had purchased approximately 31,000 units of Ethereum. Furthermore, the company had also purchased about 940 bitcoins. The purchase both added up to $50.5 million and $49.5 million respectively. These digital assets were regarded as intangible assets by the company.
Loss And Gains
The announcement included the current worth and value of the digital assets. According to Meitu, as of June 30, almost two months after the purchase, the bitcoin and ethereum were both valued at$ $32.2 million and $65.2 million respectively. This showed a $17.3 million loss in bitcoin. But the company had made $14.7 million in gains from ethereum alone.
Following market prices on the date of the announcement put the price of the assets at $72.4 million and $32.8 million. This showed that the bitcoin portfolio had made a small recovery from the last calculations.
Comparing the net increase in fair value to their carrying values subsequently put it at $5.2 million. This was assuming that the coins were sold on the date of the announcement, July 6. Which was not the case.
Meitu disclosed that they had not sold any coins out of the Cryptocurrency Investment Plan so far. The Board of Meitu still maintains its belief in the blockchain industry.
The industry is still in its early stages, with more room to grow in the long term. And thus, Meitu believes that cryptocurrencies have “ample room for appreciation over the long-term.”
This announcement puts ethereum way ahead of bitcoin in the company’s digital investment portfolio.
Rising Ethereum Value Over Bitcoin
For a while now, speculations abound in the market that ethereum might overtake bitcoin. While this might not be the case now, it is beginning to look possible as news like this come out.
So far, ethereum has been a far better performer than Bitcoin in the market. The coin has held its own even as the market has plunged. While bitcoin has lost over half its all-time high, ethereum currently holds at just about 50% of its all-time high.
This puts ethereum investors still ahead of bitcoin investors despite the dips in the market.
The Meitu announcement shows the stark differences in returns of bitcoin and ethereum assets that were purchased at roughly the same time.Source