A Chinese company, Meitu, revealed a $40 million investment in Bitcoin and Ethereum, making it the first Chinese company to announce an Ethereum investment for its treasury.
The company announced that this purchase was only the first foray into blockchain technology and that it planned on investigating opportunities for their service in the domain.
Major Signals
- Different companies are getting in on the action in crypto markets.
- For example, Aker ASA, a holding company valued at $6 billion, registered on the Oslo Stock Exchange, has created a division called Seetee AS.
- The objective is investing in Bitcoin, according to a press release by the company on Monday.
The newly created Seetee will also enter the Bitcoin mining domain to form beneficial strategic alliance players in the cryptocurrency community. Indeed, Seetee and Blockstream are said to have entered into a collaboration agreement.
Even though Norway's government cut off electricity subsidies for miners in November of 2018, the country's bitcoin mining operation nevertheless accounts for a large majority of the worldwide hash rate distribution.
This has little entered these companies as companies continue to cut a slice of the proverbial mining pie.
The company's announcement revealed that they were interested and are looking forward to investing in other cryptocurrencies. Seetee will be funded with 500 million Norwegian kroner ($58 million) from its parent company, with the new organization putting all of its liquid investable assets in Bitcoin.
Aker's usual stock holdings are in the oil exploration and marine biotech markets, so this is a notable shift. Seetee announced on Friday that it had already acquired 1,170 BTC in a tweet.
Part of the recent crypto corporation investment melee is Meitu, a Chinese beauty app, which recently announced that it had forged into the world of cryptocurrency investment.
Its board of directors had stated earlier that it intended to invest up to $100 million in cryptocurrencies. The newest $40 million purchase will be funded by the company's cash reserve.
The board insisted on expanding the investment into the two major cryptocurrencies in the attached statement. Meitu will invest $22.1 million in Ethereum, making it the first Chinese company to do so. Only Bitcoin has been the subject of previous corporate investments.
The corporation confirmed that this was just their initial venture into blockchain technology and that they will continue to look into possibilities for their operation in the space.
