Just before Bitcoin's price jumped past $100,000, Meitu, a Chinese selfie app user and one of the few Hong Kong-listed businesses to publicly reveal its cryptocurrency stakes. It announced that it had disposed of all of its cryptocurrency investments, bringing in close to US$80 million.
Meitu Crypto Portfolio: A Bullish Factor?
Meitu announced on this week that it had sold its cryptocurrency portfolio, which included 31,000 units of Ether and 940 units of Bitcoin, as of December 4 and made US$79.63 million.
According to the report, Meitu, a Hong Kong-listed company whose apps allow users to edit their photos, purchased almost US$100 million worth of the two biggest cryptocurrency tokens in March and April 2021.
The company has been selling its cryptocurrency investments since last month, and the total sale price was close to US$180 million. In an application to the Hong Kong Stock Exchange, Meitu stated that it no longer owns any bitcoin or ether.
Meitu Investment: What to Expect?
Following former United States President Donald Trump's reelection this past month, Meitu invested in its cryptocurrency investments amid a price rush. Trump's crypto-friendly speech, including his pledge to establish a bitcoin reserve, fueled investor excitement.
Following Trump's appointment of digital asset advocate Paul Atkins to lead the Securities and Exchange Commission, the biggest cryptocurrency market in the world has increased by over 130% since the start of this year and broke $100,000 in its debut on Thursday morning.
Over the past two years, Meitu's experience with digital currencies has been rocky due to wildly fluctuating prices. As the industry experienced market turbulence due to numerous scandals that year, the company cautioned investors in July 2022 that its declines could increase by as much as 154% in the initial half of the year.
Last week, Meitu declared that it would distribute an additional dividend to its investors in cash in June or July of next year, using 80% of the profits from its cryptocurrency investments.
Meitu Is Benefited From the AI
The remaining funds will be used as working capital by the business, which intends to refocus on creating its primary line of design, video, and photography products.
Attempts to make mobile devices for selfie enthusiasts and convert its selfie app into a social networking site have been among Meitu's unsuccessful attempts to monetize its apps over the years.
However, it seems that a recent push to integrate artificial intelligence (AI) into its video and photo editing apps has significantly improved performance. The business claimed in March that its AI tools were responsible for a 233% year-over-year increase in 2023 profits.
Meitu Stock (1357.HK) Technical Analysis
In the daily chart of Meitu stock price, the ongoing market momentum is correcitve as the price is trading within a triangle. However, the existing momentum is bullish, from where a potential bullish continuation could happen.
The Moving Average wave consists of 150 to 250 MA lines that are below the current price, signaling a bullish trend. However, the thickness of the MA lines signal a weaker market momentum, which needs more clues before anticipating a trend continuation.
Based on this outlook, the sideways momentum might extend as long as the price trades within the triangle. A downside pressure with a valid bullish reversal from the 3.00 to 2.57 zone could be a buy-point, aiming for the 4.00 level. Also an immediate bullish reversal above the triangel resistance might initiate an immediate bullish continuation at the 4.50 level.
On the other hand, a failure to hole the price at the 3.59 to 3.30 zone could be a challenging factor to bulls as it might increase the bearish possibility, aiming for the 2.50 zone.
