Hong Kong tech giant Meitu made headlines in April this past year after it reported nearly $100 million in crypto holdings. However, using the creation of the bear market, the tech firm has lost up to 50 % from the valuation of their crypto holdings.
Based on a nearby media report, Meitu reported an impairment lack of over 300 million yuan, roughly $43.4 million, on their own crypto holdings. An impairment loss is really a reduction in worth of a good thing if this falls underneath the transporting worth of an investment.
The financial filing says the impairment loss has greater than bending in the last quarter, something the firm had anticipated earlier. The tech giant has stated that its crypto holdings could change up the internet lack of the organization through the finish from the first half of the season.
Inside a This summer exchange filing, Meitu reported crypto holdings of approximately 940 Bitcoin (BTC) and 31,000 Ether (ETH), purchased for $49.5 million and $50.5 million correspondingly. The internet crypto investment of the organization was reported at approximately $100 million, and also the firm has lost up to 50 % from the valuations of their investment through the finish from the second quarter of 2022, because of the present downturn within the crypto market.
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Meitu isn’t the only company to incur significant losses on its crypto investments. Microstrategy, the flag bearer of public companies purchasing Bitcoin, reported an impairment lack of over $900 million on their own BTC holdings through the second quarter of 2022.
In the peak from the crypto bull run this past year, Michael Saylor-brought Microstaretgy popularized using BTC like a treasury reserve replacing part of the U.S. dollar. The concept acquired lots of traction as BTC was hitting a brand new all-time high each month, and so forth of Tesla, SpaceX and most twelve public companies became a member of the bandwagon. However, using the creation of the bear market, Bitcoin cost fell by over 70% in the top and presently buying and selling at one-third the need for its all-tim high.
