Deep Dive into Cryptocurrency Investment Strategies of MicroStrategy, Meitu, and Boya Interactive: High Returns and High Risks Coexist

Deep Dive into Cryptocurrency Investment Strategies of MicroStrategy, Meitu, and Boya Interactive: High Returns and High Risks CoexistThe cryptocurrency market has surged over 100% this year, attracting global capital attention. Against this backdrop, numerous publicly listed companies have been actively investing in cryptocurrencies, with some making significant investments while others have chosen to cash out

Deep Dive into Cryptocurrency Investment Strategies of MicroStrategy, Meitu, and Boya Interactive: High Returns and High Risks Coexist

The cryptocurrency market has surged over 100% this year, attracting global capital attention. Against this backdrop, numerous publicly listed companies have been actively investing in cryptocurrencies, with some making significant investments while others have chosen to cash out. This article will delve into the cryptocurrency investment strategies of MicroStrategy, Meitu, and Boya Interactive, exploring the underlying logic and the risks companies need to consider when allocating cryptocurrency assets.

MicroStrategy: Continuous Accumulation, Deeply Bound to Bitcoin

US-listed company MicroStrategy is renowned for its consistent Bitcoin purchases, acting as a staunch "bull" in the cryptocurrency market. Since 2020, the company has continuously bought Bitcoin, viewing it as a crucial asset allocation strategy and even deeply intertwining its fate with the cryptocurrency. This year alone, MicroStrategy has increased its Bitcoin holdings multiple times. On Monday, the company announced another $2.1 billion purchase of Bitcoin, marking its fifth consecutive Monday of Bitcoin acquisitions. According to filings with the Securities and Exchange Commission, MicroStrategy acquired 21,550 Bitcoins between December 2nd and December 8th at an average price of approximately $98,783.

This continuous accumulation strategy is closely linked to the long-term bullish outlook on Bitcoin held by its founder and chairman, Michael Saylor. Saylor believes Bitcoin is a better store of value than gold in the digital age and will become a vital component of the future financial system. He argues that for a small enterprise software manufacturer like MicroStrategy, investing in Bitcoin is an alternative path to survival and growth.

It's noteworthy that MicroStrategy's Bitcoin purchasing pace has accelerated as the price of Bitcoin has risen. The company initially took nearly a year to accumulate 100,000 Bitcoins, but it took only two weeks to go from 300,000 to 400,000 Bitcoins. This strategy can yield enormous returns when Bitcoin's price rises, but it also carries substantial risk. MicroStrategy's stock price surged over 430% this year, largely due to its Bitcoin investment, but it also made it one of the most volatile stocks this year.

Boya Interactive: Substantial Unrealized Gains, Web3 Strategic Deployment

Unlike MicroStrategy, Hong Kong-listed company Boya Interactive (with a total market capitalization of approximately $230 million) focuses its cryptocurrency investment strategy more on Web3 strategic deployment. As of November 12th, Boya Interactive held 2,641 Bitcoins and 15,445 Ethers, resulting in unrealized gains exceeding $100 million at the time.

Boya Interactive's foray into cryptocurrency assets is fueled by its ample cash flow. As of the end of 2023, the company had RMB 732 million in time deposits and RMB 744 million in cash and cash equivalents, with no short-term or long-term bank loans. This abundant cash flow provides strong support for its cryptocurrency investments.

In August 2023, Boya Interactive issued its first announcement, declaring its intention to use $5 million in cash to purchase cryptocurrencies such as Bitcoin and Ether. The company subsequently increased its cryptocurrency purchase budget multiple times. In its 2023 annual report, Boya Interactive explicitly stated that the purchase and holding of cryptocurrencies are crucial steps in its Web3 business development and deployment, and a significant part of its asset allocation strategy. Boya Interactive views cryptocurrency investment as a strategic component of its business, not mere speculation.

Meitu: Cashing Out at High Prices, Significant Profits

Unlike MicroStrategy and Boya Interactive, which continue to hold Bitcoin, Meitu chose to cash out at high prices. On the evening of December 4th, Meitu announced that it had begun selling its acquired cryptocurrencies in the market since November 2024. By December 4th, 2024, it had sold all its holdings (approximately 31,000 Ether and 940 Bitcoin), receiving total cash proceeds of approximately $180 million and realizing a profit of about $79.63 million.

Meitu's decision to sell reflects its cautious approach to market risk. While this sale generated considerable profits, it also marks the company's temporary exit from the cryptocurrency market. This action highlights the need for companies to flexibly adjust their investment strategies to mitigate risk in the face of the high volatility of the cryptocurrency market.

Other Hong Kong-Listed Companies and Market Trend Analysis

Besides the three companies mentioned above, several other Hong Kong-listed companies, including Bluesky Interactive and Guofu Innovation, hold cryptocurrency assets. This indicates that cryptocurrency investment has become part of the asset allocation strategies of some listed companies.

The continued strength of Bitcoin's price is due to a multitude of complex factors. Besides the influence of the "Trump trade" (the Trump administration expressed interest in establishing a "national strategic Bitcoin reserve," and many of his supporters are Bitcoin advocates), several other important factors contribute: the four-year halving mechanism, the approval of Bitcoin ETF funds, and the Federal Reserve's interest rate hike cycle. The approval of Bitcoin ETF funds is particularly significant, marking the formal acceptance of Bitcoin by the mainstream US financial market and attracting more traditional financial investors.

Standard Chartered Bank recently predicted that Bitcoin's breakthrough of $100,000 is just the beginning of a broader rebound, with its price potentially doubling next year and reaching $200,000 by the end of 2025.

Risks and Recommendations for Corporate Cryptocurrency Asset Allocation

While the cryptocurrency market holds immense potential, its high volatility and regulatory risks cannot be ignored. Companies need to carefully assess the risks and returns when allocating cryptocurrency assets, avoiding over-reliance on cryptocurrency investments that could impact their core business. Companies should ensure the robust development of their core businesses and, based on their risk tolerance and strategic goals, rationally allocate the proportion of cryptocurrency assets and establish corresponding risk management measures. Furthermore, closely monitoring changes in regulatory policies is a critical factor that companies need to prioritize in cryptocurrency investment. Only by fully understanding market risks and the regulatory environment can companies develop more stable investment strategies and minimize investment risks.