After Earning $79M from Crypto, Is Meitu Returning to Its Core Business?

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Meitu, the Chinese tech company best known for its photo-editing apps like MeituPic and BeautyCam, has made headlines—not for its software, but for cashing out on its cryptocurrency investments with a staggering profit of $79.63 million (approximately ¥571 million RMB). The company fully liquidated its holdings in Bitcoin and Ethereum by December 4, 2024, marking the end of a four-year crypto journey that began with controversy and ended in triumph.

But what does this exit mean? Is Meitu turning its back on speculative ventures to refocus on its core imaging and design products? And how is artificial intelligence shaping its next chapter?

The End of a Crypto Chapter

Meitu first entered the crypto market in 2021, investing around $100 million in Bitcoin and Ethereum at a time when digital assets were peaking. However, the following years brought volatility—regulatory crackdowns, market crashes, and sharp declines in crypto valuations. By 2022, Meitu reported significant losses due to the depreciation of its digital holdings.

Despite early setbacks, the company held on. With Bitcoin surging past **$100,000 per coin** in late 2024, Meitu seized the opportunity to sell all its remaining crypto assets between November and early December 2024. The timing proved impeccable: just one day after Meitu’s public announcement of full divestment, Bitcoin prices began to dip, briefly falling below $90,000.

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This successful exit wasn’t just a win for corporate strategy—it also benefited major stakeholders. Cai Wensheng, Meitu’s former chairman and an early blockchain investor who backed OKEx in 2014, indirectly stands to gain over ¥108 million RMB from the special dividend funded by these gains. However, Cai stepped down from all executive roles in June 2023, succeeded by co-founder Wu XinHong, who has since steered Meitu toward a clearer strategic focus.

Why Exit Now?

Industry experts view the move as both prudent and symbolic.

“Selling during a market high reflects rational risk management,” says Wang Peng,副研究员 at the Beijing Academy of Social Sciences. “It allows Meitu to lock in profits, reduce exposure to regulatory uncertainty, and redirect capital toward sustainable growth areas.”

Given China’s strict stance on cryptocurrency trading and mining, holding digital assets—even offshore—has always carried reputational and operational risks. For a company whose main user base is in mainland China, maintaining a low profile in crypto makes long-term business sense.

Moreover, the decision aligns with a broader shift: Meitu is returning to its roots.

Refocusing on Imaging & Design

After stepping away from ventures like smartphones (sold to Xiaomi in 2018), social apps (“Meipai”), gaming platforms, and e-commerce projects—all of which failed to gain lasting traction—Meitu has narrowed its focus to what it does best: visual creativity tools powered by AI.

Today, over 60% of Meitu’s revenue comes from subscription-based services across its flagship apps:

In the first half of 2024 alone, Meitu reported 10.81 million active paying users, with AI-driven features contributing to 81% of overall membership growth.

AI isn't just an add-on—it's now central to the product experience. From one-click background removal and object erasure to body reshaping and smart retouching, Meitu’s tools are increasingly competing with professional-grade software.

AI as a Competitive Edge

While Meitu was experimenting with AI-powered filters as early as 2013, it wasn't until the rise of large language models (LLMs) that the company doubled down on generative AI.

Its self-developed MiracleVision Large Model, launched in 2023, powers advanced features like text-to-image generation and image expansion. However, user feedback suggests room for improvement.

Compared to rivals such as Zhipu Qingyan or Doubao, Meitu’s text-to-image capabilities offer limited style options and lack fine control over lighting, composition, or camera angles. Some users report that generated images don’t accurately reflect prompts or resemble the original subject.

“The AI headshot looks nothing like me. I’d rather use LightYen or醒图,” one user commented on Xiaohongshu.

Additionally, customer experience issues persist:

These friction points could hinder retention as competition intensifies.

FAQ: Your Questions About Meitu’s Shift Answered

Q: Did Meitu really make $79 million from crypto?
A: Yes. According to its official announcement, Meitu sold all its Bitcoin and Ethereum holdings by December 4, 2024, realizing a net gain of approximately $79.63 million.

Q: Why did Meitu invest in crypto in the first place?
A: The initial push came largely from former chairman Cai Wensheng, a known blockchain enthusiast and early backer of OKEx. The investment was framed as part of a long-term blockchain strategy.

Q: Is Meitu leaving crypto forever?
A: While there's no official statement ruling out future involvement, the complete divestment and recommitment to core imaging products suggest a strategic pivot away from speculative assets.

Q: What is Meitu focusing on now?
A: AI-powered creative tools—especially subscription-based photo and video editing apps like MeituPic, BeautyCam, and Wink.

Q: How is Meitu growing outside China?
A: International markets now account for 32.9% of total MAUs (84 million). Apps like Wink have seen explosive growth overseas, particularly in Southeast Asia.

Q: Can Meitu compete with global AI image generators?
A: It faces stiff competition from tools like Midjourney and Stable Diffusion. To stay relevant, Meitu must enhance its generative AI quality and usability for professional creators.

Going Global: The International Push

While domestic user numbers have slightly declined—MeituPic’s MAU dropped from 1.3 billion to 1 billion between 2023 and May 2024—growth abroad tells a different story.

Overseas monthly active users reached 84 million in H1 2024, up 15% year-on-year, driven by viral AI features on social media platforms. Wink saw a 99% increase in MAU, fueled by demand for short-form video beautification tools.

In countries like Indonesia and Thailand, MeituPic has topped App Store charts. The global appeal lies in its simplicity and strong AI aesthetics tailored to Asian beauty standards—a niche where Western apps often fall short.

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Still, challenges remain. As noted by Lin Xianping, Secretary-General of Zhejiang City College’s Cultural Innovation Institute, sustained international success depends on adapting to local preferences and fending off well-funded global competitors.

Expanding into B2B: Beyond Consumer Apps

Beyond consumer-facing tools, Meitu is building enterprise solutions:

These “productivity” tools saw a 42% YoY increase in MAU, outpacing lifestyle-oriented apps.

Niche B2B offerings allow Meitu to monetize expertise while reducing reliance on volatile consumer trends.

A Clearer Path Forward

As陈剑毅 (Meitu Senior VP) reflected: “We chased too many trends—e-commerce, blockchain, healthcare—and paid the price. Now we know: focus on what we’re good at.”

That strength lies in AI-powered visual creation. With crypto profits reinvested into R&D and subscriptions forming a stable revenue stream, Meitu appears poised for a more disciplined era.

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Yet the road ahead isn’t without hurdles. To maintain momentum, Meitu must:

The crypto windfall may have been a lucky break—but turning it into lasting value will require more than luck.

Core Keywords: Meitu, cryptocurrency investment, AI photo editing, MeituPic, BeautyCam, Wink app, AIGC, digital transformation