The developer of popular Chinese smartphone apps, like Meitu App and BeautyCAM, allows users to make their selfies look better for social media. The photo app is one of the world's top holders of cryptocurrencies, ranking 12th among publicly-traded companies.
The investment is dragging Meitu deeper into the red.
In a filing with Hong Kong's stock exchange, Meitu said that its net loss for the first half of the year could be more than double what it recorded a year ago.
Meitu warned investors to "exercise caution when dealing in the shares of the company." Meitu shares fell by more than 10% on Monday.
Between March and April of this year, the company bought about 50 million and 50 million ethers, which it owned. The difference between what Meitu paid for cryptocurrencies and its current market value was expected to cause impairment losses.
The company claimed in their filing that the losses would not affect the company's operations. Although digital currencies are prone to volatility, Meitu believes that adoption has plenty of room to grow and that Cryptocurrencies are an important part of that.
The ability of Meitu to engage in the night is limited. After Chinese regulators banned financial institutions and payment companies from dealing with digital coins, Meitu bought into cryptocurrencies.
Even though other bullish companies have bought into the crash, Meitu hasn't bought or sold any cryptocurrencies since China's ban.
MicroStrategy, whose founder Michael Saylor is one of Bitcoin's loudest proponents, revealed last Wednesday that it had bought an additional $10 million worth of the virtual currency in the last two months.
MicroStrategy is one of the largest publicly traded companies with holdings in the virtual currency. The company has a small stake in the digital currency.
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