The cryptocurrency market remains volatile, with Bitcoin hovering around the $20,000 mark in September 2025 after a sharp drop from $21,500 just days earlier. As the mid-year financial reporting season wraps up, several publicly listed companies have revealed their digital asset positions—painting a mixed picture of losses, resilience, and long-term conviction.
Among them, Meitu, the Hong Kong-listed tech firm known for its bold crypto investments, has reported significant impairment losses tied to its holdings of Bitcoin and Ethereum. Meanwhile, Canaan Creative, a leading blockchain hardware company, has doubled down on Bitcoin despite broader market downturns.
This growing divergence among public firms reflects not only differing risk appetites but also contrasting views on the long-term value of digital assets.
Meitu’s $30 Million Cryptocurrency Impairment
In early July 2025, Meitu (01357.HK) issued a profit warning, forecasting a net loss between RMB 274.9 million and RMB 349.9 million—a year-on-year increase of nearly 100% to over 150%. The primary driver? A sharp decline in the fair value of its cryptocurrency portfolio.
According to its latest interim report, as of June 30, 2025, Meitu continued to hold approximately 31,000 ETH and 940.5 BTC under its digital asset investment strategy. At prevailing market prices, these holdings were valued at around $32 million for Ethereum** and **$18 million for Bitcoin.
However, due to the steep price corrections in both assets during the first half of the year, Meitu recorded impairment losses of approximately RMB 124.1 million on Ethereum and RMB 181.4 million on Bitcoin, totaling over RMB 305 million (~$43 million) in write-downs.
Despite these losses, the company showed strength in core operations. Total revenue reached RMB 971.2 million, up 20.5% year-over-year, while adjusted net profit attributable to equity holders rose 7.9% to RMB 36 million. However, the overall net loss widened to RMB 281.6 million, compared to RMB 137.7 million in the same period last year—largely driven by crypto-related impairments.
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Why Crypto Volatility Impacts But Doesn’t Break Big Firms
Wang Shiqiang, Senior Researcher at Bingjian Technology Institute, explained that unlike traditional assets backed by physical value or cash flows, cryptocurrencies like Bitcoin and Ethereum derive their worth purely from supply-demand dynamics—making them inherently volatile.
“While crypto depreciation affects a company’s bottom line,” Wang noted, “the actual impact on operations is generally limited because most firms allocate only a small portion of their capital to such speculative assets.”
For companies like Meitu with strong operating cash flows and diversified revenue streams—from photo editing apps to AI-powered design tools—the financial hit from crypto swings is more of an accounting event than a business crisis.
Still, the lack of standardized global accounting rules for digital assets introduces complexity. Depending on intent—whether held for long-term investment or resale—crypto can be classified as either an intangible asset or inventory measured at fair value. This flexibility allows some leeway in financial reporting but also raises questions about transparency.
BC Tech and Canaan: Divergent Paths in a Bear Market
Another Hong Kong-listed player, BC Technology Group, reported a net loss of HKD 315.5 million for the first half of 2025. The loss stemmed from digital asset impairments linked to its OTC trading arm and ongoing investments in global blockchain expansion.
Its digital asset portfolio shrank dramatically—from HKD 721 million at year-end 2024 to just HKD 238 million by mid-2025, a reduction of 67%, reflecting both price declines and strategic de-risking amid prolonged bearish sentiment.
In contrast, Canaan Creative (NASDAQ: CAN) delivered impressive results. The maker of Avalon mining rigs posted Q2 revenue of RMB 1.65 billion, up 52.8% year-over-year, with net profit soaring 148.6% to RMB 608.9 million.
More strikingly, Canaan took a contrarian stance: it added 180 BTC during Q2, increasing its total Bitcoin holdings to 346.84 BTC, worth approximately RMB 513 million—a staggering 107.74% quarter-on-quarter increase.
CEO Zhang Nangeng acknowledged ongoing headwinds from Bitcoin’s price slump since late 2024 but remained bullish:
“We fully recognize the downward pressure on Bitcoin prices over the past several quarters. But we continue to believe in its unique value proposition and long-term potential.”
The Strategic Case for Crypto in Corporate Reserves
Jiang Zhaosheng, Senior Researcher at OKLink Research Institute, argues that digital assets are increasingly becoming a legitimate component of corporate treasury diversification.
“Over historical cycles, crypto assets have delivered strong annualized returns and provided meaningful portfolio diversification benefits—especially during periods of monetary expansion or inflationary stress.”
He emphasizes that while short-term volatility can hurt earnings reports, firms with robust balance sheets can afford to ride out downturns. For forward-thinking companies, holding crypto isn’t speculation—it’s part of a broader digital transformation strategy.
Moreover, regulatory clarity is slowly improving across jurisdictions, encouraging more institutional participation. Accounting frameworks may still vary, but the trend points toward greater recognition of blockchain-based assets as legitimate store-of-value instruments.
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Ethereum’s Merge: A Turning Point for Blockchain?
September 2025 marks a pivotal moment for the crypto ecosystem: Ethereum’s official merge to proof-of-stake is set to begin on September 6.
As Jiang Zhaosheng notes, this upgrade ranks among the most significant events in blockchain history—second only to Bitcoin’s genesis block.
“The merge represents a technological leap—cutting Ethereum’s energy consumption by over 99%, enhancing security, and laying the foundation for scalability upgrades like sharding.”
While much of the positive sentiment has already been priced in—leading to muted immediate price reactions—the long-term implications are profound. Lower issuance rates, reduced environmental impact, and improved developer experience could attract new institutional users and decentralized applications.
Even during one of the harshest bear markets in history—with ETH dropping below $1,500 and single-day liquidations exceeding **$280 million across 100,000 traders**—major players are maintaining faith.
Frequently Asked Questions (FAQ)
Q: Why do public companies invest in cryptocurrency?
A: Companies may hold crypto as part of treasury diversification, speculative investment, or strategic alignment with blockchain trends. For some tech firms, it signals innovation and future-readiness.
Q: How does crypto depreciation affect financial statements?
A: Under most accounting standards, crypto is treated as an intangible asset. Declines in fair value result in non-cash impairment losses that reduce net income but don’t immediately affect cash flow.
Q: Can companies reverse crypto impairment losses?
A: Generally no—under IFRS and GAAP, once an impairment is recognized on crypto held as intangible assets, it cannot be reversed even if prices recover.
Q: Is it risky for public firms to hold Bitcoin or Ethereum?
A: Yes—high volatility introduces earnings uncertainty. However, if exposure is small relative to total assets and cash reserves are strong, the operational risk remains manageable.
Q: What happens when Ethereum completes the merge?
A: Ethereum transitions from energy-intensive proof-of-work to efficient proof-of-stake, drastically reducing emissions and setting the stage for future upgrades that improve speed and lower fees.
Q: Are more companies expected to adopt crypto treasuries in 2025?
A: While adoption remains cautious, growing infrastructure maturity and regulatory clarity suggest gradual uptake—particularly among tech-forward firms focused on Web3 integration.
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