Meitu Exits Crypto: Full Divestment from Digital Assets

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In a strategic move marking the end of a controversial chapter, Meitu has officially exited the cryptocurrency market—selling off its entire digital asset portfolio at the peak of a bull run. The decision underscores a broader pivot back to its core imaging and design business, signaling a renewed focus on sustainable, subscription-driven growth.

This article unpacks Meitu’s journey from blockchain ambitions to crypto investments and, ultimately, full divestment. We explore the financial implications, strategic shifts, and what this means for the future of one of China’s most recognizable consumer tech brands.

The Final Exit: Meitu Sells All Cryptocurrency Holdings

On December 4, 2024, Meitu Company announced it had sold all of its remaining cryptocurrency assets, including approximately 31,000 ether (ETH) and 940 bitcoin (BTC). The total cash proceeds amounted to around $180 million**, generating a net profit of approximately **$79.63 million (about 571 million CNY).

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This marks the definitive close of Meitu’s four-year foray into digital assets—an experiment that began in 2021 amid soaring market enthusiasm. At the time of the initial investment, Meitu was seen as one of the first major consumer-facing tech firms to allocate corporate treasury funds into crypto. Now, with the sale complete, the company holds no ether or bitcoin.

According to the official announcement, the sales were conducted in two phases:

The timing aligns with a period of strong upward momentum in crypto markets, particularly for Bitcoin, which saw significant price appreciation throughout late 2024. Industry experts suggest Meitu’s exit reflects a disciplined investment strategy—locking in gains before potential market corrections.

“Corporate investors like Meitu often set clear profit-taking thresholds,” said Yu Jianing, co-chair of the China Communications Industry Association Blockchain Committee. “Given the volatility of digital assets, selling during an uptrend—not waiting for an absolute peak—is a prudent capital management decision.”

From Blockchain Dreams to Strategic Retreat

Meitu’s interest in blockchain predates its crypto investments by several years. In early 2018, the company released a high-profile blockchain whitepaper, outlining plans to build a decentralized ecosystem powered by AI.

The centerpiece? A digital identity solution called the Meitu Smart Passport, which would allow users to use facial features as cryptographic keys on a blockchain-based authentication system. The vision was ambitious: a secure, user-owned identity layer integrated into Meitu’s popular photo-editing apps.

But seven years later, that vision has been shelved.

When contacted for comment, a Meitu representative confirmed: “Meitu no longer has any blockchain-related business operations.” The company declined to disclose when or why the project was discontinued.

This retreat mirrors a broader industry trend: many companies that once embraced blockchain during the hype cycle of 2017–2018 have since scaled back or abandoned such initiatives due to technical challenges, regulatory uncertainty, and lack of user adoption.

Why Did Meitu Invest in Crypto?

The 2021 crypto purchase was more than just a financial bet—it was interpreted by many as a strategic signal. At a time when Tesla and MicroStrategy were making headlines with their Bitcoin buys, Meitu positioned itself as part of a new wave of tech innovators embracing digital assets.

However, critics argued the move distracted from its core mission. With slowing user growth and declining revenue in earlier years, some investors questioned whether Meitu was becoming “distracted” by speculative ventures.

Indeed:

Still, the crypto investment remained under scrutiny—especially as prices fluctuated wildly over the next few years. For much of the holding period, the portfolio was underwater. Only in late 2024 did market conditions allow for a profitable exit.

Refocusing on Core Strengths: The Rise of Subscription-Based Imaging

With crypto fully divested, Meitu is redirecting capital toward its foundational business: AI-powered imaging and design tools.

For H1 2024, Meitu reported:

Revenue is now structured across four segments:

  1. Imaging & Design Products (57.4% of total)
  2. Beauty Solutions
  3. Advertising
  4. Other

The imaging and design segment—home to flagship apps like MeituPic and Wink—has become the company’s primary growth engine. Subscription penetration is rising rapidly, driven by AI-enhanced editing features such as portrait retouching, background generation, and style transfer.

Meitu plans to allocate about 80% of its crypto profits (~$63.7 million)** as a special dividend to shareholders. The remainder—roughly **$16 million (114 million CNY)—will be reinvested into expanding its paid subscription offerings.

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Navigating the AIGC Boom: Opportunities and Risks

Meitu’s resurgence coincides with the explosive growth of AIGC (AI-Generated Content). The company has launched its own generative AI model—Meitu Imagine Model—targeted at both consumers and enterprise clients.

But competition is intensifying:

“Meitu benefits from strong brand recognition and deep expertise in visual editing,” said Wang Qinglin, research manager at Rudder Intelligence. “But if their paid AI features don’t deliver clear value over free alternatives, customer churn could become a real risk.”

Wang warns that investor expectations around AIGC may cool in the coming years—a phenomenon known as “AIGC disenchantment.” To sustain growth, Meitu must prove its premium tools are indispensable.

Frequently Asked Questions (FAQ)

Q: Why did Meitu sell all its cryptocurrency?
A: Meitu sold its holdings to lock in profits (~$79.6M) amid high market valuations and refocus on core imaging and subscription products.

Q: Does Meitu still have any blockchain projects?
A: No. A company representative confirmed that Meitu currently has no active blockchain-related business.

Q: How will the crypto profits be used?
A: About 80% will go toward a special dividend; the rest will fund expansion of its paid imaging and design services.

Q: What was Meitu’s original blockchain plan?
A: In 2018, Meitu proposed a decentralized identity system called “Meitu Smart Passport,” using facial data as cryptographic keys—now discontinued.

Q: Is Meitu profitable today?
A: Yes. In H1 2024, it achieved 274 million CNY in adjusted net profit, fueled by AI-driven subscription growth.

Q: What are the main risks facing Meitu now?
A: Rising competition from free AI tools and potential slowdown in AIGC adoption could threaten its premium service model.

Looking Ahead: Can Meitu Sustain Its Comeback?

Meitu’s exit from crypto is less a retreat than a recalibration. By cashing out at a strategic moment and funneling resources into AI-powered creativity tools, the company is betting on long-term value creation—not market speculation.

The focus on paid subscriptions, AI enhancement, and user retention reflects a matured business model aligned with current tech trends.

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Yet success isn’t guaranteed. As generative AI becomes ubiquitous, differentiation will hinge on user experience, speed, and tangible results—not just novelty.

For now, Meitu has written a new chapter—one grounded in product innovation rather than blockchain hype. Whether this pivot delivers lasting growth will depend on execution, agility, and staying ahead of an ever-evolving digital landscape.

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