Meitu (1357), the pioneering Hong Kong-listed company known for its ventures into cryptocurrencies, has recently announced a strategic shift away from digital assets like Bitcoin and Ethereum.

The company, which made headlines in 2021 for investing around $100 million in cryptocurrencies, has revealed that its growth is now driven primarily by its artificial intelligence (AI) business.

Meitu Credits Subscription System for Fiscal Success

Kang Yicong, senior investor relations manager of Meitu, recently confirmed that the company no longer focuses on buying and holding digital assets and may consider selling them in the future. She explained that the decision is rooted in the changing global economic environment, which has prompted many companies to rethink their spending habits. This shift, in turn, has created an opportunity for Meitu’s products to gain traction in the market.

Kang Yicong stated that the company’s turnaround from losses to profitability is largely attributed to its subscription system, which has shielded its earnings from the volatile macroeconomic landscape. Additionally, Meitu’s AI business has been a significant growth driver in attracting new subscribers and contributing to profits.

Meitu’s current strategic focus lies in video production, complementing its venture into AI. In early October 2023, the company unveiled its enterprise AI vision solution, MiracleVision 3.0, capitalizing on the global AI craze driven by technologies like ChatGPT. Kang Yicong emphasized that AI is expected to play a pivotal role in the company’s development, especially in expanding its subscription base and contributing to profits.

Meitu’s $100 Million Crypto Investment Journey

Meitu’s experience in the cryptocurrency market involved a substantial investment that initially faced losses. However, recent market recoveries have allowed the company to reverse approximately 190 million yuan in impairment losses related to its cryptocurrency holdings. Kang Yicong clarified that Meitu ceased purchasing cryptocurrencies after 2021, citing the decision as a strategic one.

Looking ahead, Kang Yicong expressed optimism about the overseas market, with a growing demand for Meitu’s AI-powered painting and other functions. The company intends to design and launch products with a global perspective, initially targeting Southeast Asia, Japan, South Korea, Europe, and the United States. Local development strategies will be tailored to adapt to each region’s unique conditions and demands.

The post Meitu Focuses on AI Growth, Moves Away from BTC, ETH Investments appeared first on CryptoPotato.

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Filed under: Bitcoin - @ October 22, 2023 7:04 pm