(Yicai Global) March 8 -- Meitu’s shares tumbled after the Chinese photo-editing app operator become the world's first listed company to disclose a major Ether purchase aimed at diversifying its treasury. 

Meitu [HKG: 1357] ended today 6.3 percent lower at HKD2.54 (33 US cents), after falling as much as 7.8 percent earlier. It had soared 14.4 percent at the open.

The company bought 15,000 units of Ether for about USD22.1 million and more than 379 Bitcoins for around USD17.9 million in the open market on March 5, Meitu said in a statement yesterday. Its board has approved a plan to spend up to USD100 million to buy cryptocurrencies, the Xiamen-based firm added.

Tesla made headlines early last month when the US electric carmaker revealed that it had bought USD1.5 billion of Bitcoin, sparking speculation that other firms may follow suit. Tesla’s stock price has fallen almost 31 percent since Feb. 8.

Meitu is the first Hong Kong-listed company to buy Bitcoin, Chairman Cai Wensheng said via his WeChat Moments soon after the firm’s announcement. The purchases form part of Meitu’s long-term blockchain development strategy, he said.

The platform can diversify its cash reserves using cryptocurrencies which have enough room for appreciation, according to its board. Meitu was also seeking to prove to investors that it is determined to accept technological innovation while preparing to enter the blockchain field, it added.

Bitcoin [BTC] was trading at USD49,830.40 this afternoon after hitting a historic high of USD57,489.10 on Feb. 21. Ether [ETH] was at USD1,703.80 today. It exceeded USD2,028 on Feb. 20, according to CoinDesk.

Formed in October 2008, Meitu had more than 295 million monthly active users of its iconic beauty filters as of last June.

Editor: Emmi Laine, Xiao Yi