Hong Kong-listed beauty app Meitu and other companies that have invested in cryptocurrencies have seen millions of dollars wiped off the value of their stock following the huge global Bitcoin sell-off this week. China’s swipe at cryptos earlier this week has only made things worse.
Fast Facts:
- Xiamen-based Meitu’s share price tumbled to as low as HK$1.83 in Hong Kong yesterday before closing at HK$1.97 today. As recently as April 9, when Meitu announced a third round of Bitcoin purchases, its stock was trading at HK$2.70, 27% higher.
- Meitu was the one of the first major Hong Kong-listed companies to purchase cryptocurrencies, buying Bitcoin and Ether three times in March and April. Currently, Meitu holds 31,000 ETH and about 940 BTC, which were worth US$100 million on April 9 but which have since seen their value fall to around US$90.6 million.
- Other Chinese crypto-invested companies such as Urban tea, a Nasdaq-listed tea and baked goods retailer, 500.com, a Shenzhen-based online sports lottery provider, and The 9, an online game developer, which have turned to mining coins, have also seen their stock pummeled. Shares of 500.com, which reinvented itself as a crypto miner and changed its name to BIT Mining, dived 17.5% yesterday.