Chinese picture beautification app maker Meitu has made a huge investment in cryptocurrencies to reduce the risk of holding cash. The move comes when the company wants to get into the blockchain industry.

In a share filing filed on Sunday, Hong Kong-listed Meitu announced that it had bought $ 22.1 million in ether and $ 17.9 million in bitcoin on March 5 for up to $ 100 million . USD of its cash reserves to buy maturing cryptocurrencies after the company is convinced that the cryptocurrencies have enough space to appreciate them.

More importantly, the investment is a signal to investors that Meitu “has the vision and determination to embrace technological advancement” in order to prepare to enter the blockchain industry, Meitu said on the file.

The company is currently evaluating the feasibility of integrating blockchain technology into its overseas operations, including the possible rollout of Ethereum-based apps and investing in other blockchain projects.

Ethers are used to conduct transactions or execute contracts on the open source blockchain-based Ethereum network. Therefore the purchase of these ethers was a “logical preparation”. Meitu’s move follows in the footsteps of Tesla, which bought $ 1.5 billion in Bitcoin last month in a demonstration of its intention to accept the cryptocurrency as a payment option. The purchase of Tesla increased the price of Bitcoin by 20%.

Contact reporter Ding Yi (yiding@caixin.com)

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