Chinese tech giant Meitu Inc MEIUY reported a significant impairment loss on its cryptocurrency holdings.
What Happened: Meitu recorded a loss of over 300 million yuan or $43.4 million on its Bitcoin BTC/USD and Ethereum ETH/USD holdings, reported a local media outlet on Wednesday.
The impairment loss on cryptocurrencies held on its balance sheet doubled to 305 million yuan from a loss of 112 million yuan reported in the same period last year.
In April 2021, Meitu held a collective amount of $100 million on its balance sheet in the form of BTC and ETH. At the time, the company held 31,000 ETH and 940 BTC, the bulk of which was purchased when the market-leading cryptocurrencies were trading ahead of $1,700 and $50,000, respectively.
Earlier this year, Fortune reported that the company said attributed its mounting losses to the crash in the value of crypto assets acquired over the year.
Meitu ranks 10th in terms of the size of BTC holdings held by publicly traded companies. MicroStrategy Inc MSTR still ranks first, with 129,699 BTC worth $2.6 billion at press time, followed by Marathon Digital Holdings MSTR, which holds 10,000 BTC worth $201 million, and Coinbase Global Inc COIN that holds 9,000 BTC worth $180 million.
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Price Action: BTC was trading at $19,980 at press time, down 1.03% over 24 hours, as per data from Benzinga Pro.