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Meitu loses up To $52.3 Million due to the fall in crypto prices

Meitu, a Chinese facial app that became a hot topic after investing in Bitcoin about two years ago, announced that it is expected to record a deficit of about $44,398,401 due to the collapse of virtual currency.

The Xiamen, Fujian-based firm’s stock tumbled as much as 8.7% in Hong Kong, the most in over two weeks, after saying it expected impairment from Bitcoin and Ether holdings to triple from a year ago. The loss was disclosed in an exchange filing Sunday, and the company is expected to publish first-half results in August. (1)

Meitu stated on the Hong Kong Stock Exchange that in the first half of 2022, the company’s net loss might reach 274.9 million to 349.9 million dollars, an increase of about 99.6% to 154.1% compared with the net loss of about 137.7 million dollars in the same period last year.

According to the announcement, Meitu’s net loss in the first half of the year increased by more than 98% year-on-year, and a loss of 311 million.

Meitu has seen increased competition from firms including ByteDance ltd and Xiaomi Corp. In recent years. Total monthly active users for Meitu slipped 12% in 2021, and the firm now trades just over 10% of its debut price. It had yet to turn a profit after its notable initial public offering nearly six years ago. Shares are down nearly 40% this year. (2)