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Fujian-based beauty app Meitu, which is publicly listed in Hong Kong, said it has purchased 15,000 units of Ethereum (ETH) on Sunday.
What Happened: The company’s cryptocurrency purchase is worth $25.98 million as of press time, when ETH traded 4.28% higher at $1727.92.
Additionally, the company said it also purchased 379.1214267 units of Bitcoin (CRYPTO: BTC), worth $18.96 million, as of press time when BTC traded 1.43% higher at $50,011.39.
Meitu’s ETH and BTC purchases were made at an aggregate consideration of nearly US$22.1 million and US$17.9 million respectively.
Why It Matters: ETH could be headed for another sharp price spike as developers have agreed to move ahead with an update that would lead to a reduction in the number of tokens in use.
Meitu can make a net purchase of up to $100 million worth of cryptocurrencies under an investment plan previously approved by its board of directors, the company said.
Meitu's ETH investment marks for the first time, a publicly-listed company has announced a major purchase of the second-largest cryptocurrency by market cap, reported CoinDesk.
Previously, some large companies have announced BTC investments.
Elon Musk’s Tesla Inc (NASDAQ: TSLA) also purchased $1.5 billion worth of BTC.
The biggest bull among listed companies so far has been Michael Saylor’s MicroStrategy Incorporated (NASDAQ: MSTR), which owns 90,531 BTC, as of late February, acquired at an average purchase price of .171 billion.
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