In a strategic financial move that has drawn industry-wide attention, Meitu has fully exited its cryptocurrency holdings, realizing a profit of approximately $796.3 million USD (about 5.71 billion CNY). The decision, announced in a December 4 corporate filing, marks the end of Meitu’s public chapter in blockchain and digital assets—a journey that began with ambition, weathered skepticism, and ultimately concluded at a market peak.
The company plans to distribute around 80% of the gains as a special dividend to shareholders, reinforcing investor confidence. The remaining 20% will be allocated as general operating capital, primarily to expand its core image and design products business under a paid subscription model—a pivot that reflects Meitu’s renewed focus on sustainable, user-driven revenue streams.
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From Blockchain Dreams to Strategic Exit
Before its high-profile foray into crypto investment, Meitu had already signaled strong interest in blockchain technology. In 2018, the company released a blockchain whitepaper outlining plans to build an AI-powered decentralized ecosystem. However, this vision was met with criticism, as many viewed it as a distraction from its core imaging apps. The term “straying from the main business” became a common refrain among analysts.
Despite early enthusiasm, the investment remained underwater for years, often becoming a subject of public jest. As market sentiment fluctuated, Meitu gradually shifted tone—stepping back from blockchain discussions and refocusing on its flagship applications. By 2024, the company confirmed: “Meitu no longer has any blockchain-related operations.”
This evolution mirrors a broader transformation in Meitu’s business strategy—from experimental ventures to disciplined execution centered on AI-generated content (AIGC) and subscription-based monetization.
Financial Turnaround: A Story of Resilience
To understand Meitu’s current success, one must examine its financial trajectory across key years:
- 2018 (Blockchain Launch Phase): Revenue stood at 2.052 billion CNY, down 5.9% year-over-year. The company reported an adjusted net loss of 199 million CNY, split between internet services and smart hardware.
- 2021 (Crypto Investment Era): Revenue dipped to 806 million CNY but grew 44.6% YoY. More importantly, Meitu turned profitable with an adjusted net profit of 20.3 million CNY—driven by online ads, premium subscriptions, and in-app purchases.
- 2024 (Post-Crypto Focus): A significant rebound. Total revenue reached 1.621 billion CNY, up 28.6%, with adjusted net profit soaring 102.42% to 274 million CNY. The growth was fueled by its four core segments: image & design products, beauty solutions, advertising, and other services.
This progression illustrates how Meitu navigated uncertainty and emerged stronger—not through speculation alone, but by aligning investments with long-term product development.
Core Business Strength: The Power of Subscriptions
Today, image and design products form the backbone of Meitu’s revenue, contributing 57.4% of total income in H1 2024—up from 47.8% the previous year. This segment leverages Meitu’s legacy as a photo-editing pioneer while integrating advanced AI tools like the newly launched Meitu AI Art Generator.
Subscription penetration is now the key performance indicator. With users increasingly willing to pay for enhanced creative features—especially in video editing, portrait refinement, and template access—Meitu is capitalizing on the growing demand for professional-grade tools among casual creators.
Of the estimated 5.71 billion CNY in crypto profits, roughly 1 billion CNY will be reinvested into expanding this subscription ecosystem—funding R&D, improving user experience, and scaling global distribution.
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Navigating Challenges in the Age of AIGC
While Meitu enjoys momentum, challenges loom. The rise of open-source and free AI image generators—such as Stable Diffusion and DALL·E—has intensified competition. Additionally, established players like Adobe continue to integrate generative AI into their Creative Cloud suite, posing a direct threat to Meitu’s premium offerings.
Wang Qinglin, research manager at Rendaheng Institute, notes:
“Meitu has successfully launched its own large model—Meitu Imagine—and entered the B2B space. But as text-to-image and image-to-image technologies mature rapidly, differentiation becomes critical. Without clear value beyond basic editing, even loyal users may churn.”
Moreover, investor expectations are shifting. As the initial hype around AIGC cools, capital markets will demand tangible ROI from paid features. If conversion rates stagnate or user retention declines, Meitu’s valuation could face pressure.
Why Timing Matters: Exiting at the Peak
According to Yu Jianing, co-chair of the China Communications Industry Association’s Blockchain Committee, Meitu’s exit timing reflects institutional-grade foresight.
“2021 was a breakout year for digital assets. Meitu’s entry then signaled belief in the long-term potential of blockchain. But smart investors don’t chase peaks—they set exit strategies.”
Given Bitcoin’s rapid appreciation and increased market volatility, gradual liquidation during upward trends allowed Meitu to lock in gains without triggering panic selling or liquidity issues—a textbook example of disciplined corporate investing.
FAQs:
Q: Did Meitu lose money on its crypto investment initially?
A: Yes. For several years after purchasing Bitcoin and Ethereum in 2021, the holdings were in a paper loss due to market downturns. However, prices recovered significantly by late 2024, turning the investment highly profitable.
Q: Is Meitu still involved in blockchain or crypto projects?
A: No. Company representatives have clearly stated that Meitu no longer engages in blockchain-related activities or holds any digital assets.
Q: How will the crypto profits impact shareholders?
A: About 80% of the ~5.71 billion CNY profit will be distributed as a special dividend, directly benefiting investors.
Q: What is Meitu’s main source of revenue today?
A: Its image and design product line—especially AI-enhanced editing tools offered via subscription—is now the largest revenue contributor.
Q: Can Meitu compete with Adobe and other AI art platforms?
A: It faces stiff competition but differentiates through mobile-first design, ease of use, and localized content for Asian markets.
Q: Will Meitu invest in crypto again in the future?
A: There are no current plans or indications of re-entering the crypto market; all focus remains on core product growth.
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Final Thoughts: A New Chapter Begins
Meitu’s journey—from blockchain pioneer to crypto profiteer to AI-powered SaaS provider—offers valuable lessons in strategic adaptation. By cashing out at the right moment and funneling proceeds into scalable subscription services, it has strengthened both its financial health and market positioning.
As AIGC reshapes creative industries, Meitu stands at a crossroads: leverage its user base and AI models to become a global design platform—or risk fading amid rising competition. With disciplined investment and clear focus, the path forward looks brighter than ever.
Keywords: Meitu cryptocurrency profit, AI-generated content (AIGC), paid subscription model, image and design products, crypto investment strategy, digital asset exit, Meitu AI Art Generator