Coinbase Institutional, the wing of the Coinbase cryptocurrency exchange that handles transactions for companies, announced today that the $ 90 million Bitcoin and Ethereum purchased by Chinese technology company Meitu this month have been taken under surveillance.
Meitu, which makes smartphones and selfie apps, bought $ 22 million Ethereum and $ 17.9 million Bitcoin in early March, two weeks later buying $ 28.4 million Ethereum and $ 21.6 million Bitcoin.
Coinbase Institutional was selected by @meituofficial for both trade execution and custody on their treasury allocation into Ethereum and Bitcoin. To learn more about how Coinbase Institutional is helping corporates diversify with crypto click here:https://t.co/esmVq9kaFT
— Coinbase Institutional (@CoinbaseInsto) March 24, 2021
The Fujian-based company said it made the purchase because it believes cryptocurrencies “have enough room for value appraisal” and that cryptocurrencies will serve as an alternative to cash.
Coinbase Institutional said in an announcement that it was selected by Meitu as the sole partner to handle the purchase and then store assets. Coinbase has been chosen by other large companies to take care of Bitcoin storage, including business intelligence firm MicroStrategy.
In the statement made by the company, the following statements were made:
“Meitu joins a long list of companies that Coinbase Institutional continues to diversify with crypto, including Microstrategy and other companies. However, Meitu has revealed a unique situation that is not yet widely seen to allocate a significant portion to ETH.
Meitu stands out as the latest institution to allocate large funds to cryptocurrency. MicroStrategy was the first and they currently hold more than $ 5 billion in Bitcoin. Since then, payments company Square has followed suit, which spent $ 220 million last year.
And Elon Musk’s car company Tesla completed the $ 1.5 billion purchase of Bitcoin in February.
But despite joining large institutions to invest in alternative assets, Meitu acknowledged the risks involved and said that “cryptocurrency prices in general are still quite volatile.