Chinese Companies Dare To Invest In Crypto Faster Than Western Peers

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Earlier this week, Chinese smartphone and app maker Meitu announced that it had followed in Tesla and MicroStrategy’s footsteps by investing in Bitcoin and Ether directly.

Binance CEO Changpeng Zhao admitted that:

Many Asian companies own bitcoin already. They are just not very public about it.

In fact, crypto is outpacing other industries in Asia when it comes to fundraising as of late. Chinese companies who wish to expand their crypto operations are raking in cash in the Middle Kingdom at a faster rate than their Western peers who are being held back by regulatory fears apparently.

“Many Asian companies own #bitcoin already. They are just not very public about it.” - CEO of the world’s largest exchange, @cz_binance

— Documenting Bitcoin 📄 (@DocumentingBTC) March 9, 2021

Some wonder whether the introduction of the E-Yuan by the Beijing government has ensured that the Chinese tech sector dares to expand further into crypto, which is officially forbidden in fact.

Fundraising surge

The strange thing is that the Chinese rush for fundraising seems to have been propelled by two separate events who are both of American origin.

Firstly, Tesla CEO Elon Musk announced that his company would invest some of its sleeping cash directly into Bitcoin, and secondly there is the fact that Coinbase, the biggest US cryptocurrency exchange (Binance is the biggest worldwide based on trading volume) has recently filed for a Nasdaq listing.

Asia is buying. This will get interesting pic.twitter.com/MU8PAXAsgf

— Mira Christanto (@asiahodl) March 9, 2021

Everyone can feel this euphoric atmosphere in the market, and Coinbase’s listing would lift the mood further.

Explained Jiang Changhao, chief technology officer of Beijing-based crypto company Cobo.

The fundraising is not limited to crypto companies alone. Ebang International Holdings, the Chinese manufacturer of bitcoin mining equipment, is receiving millions in several fundraising rounds. In February alone companies offered it some $170 million in investment, after seeing the US state of Texas opening up for Bitcoin mining operations.

Ebang explained that the new capital will be used for future expansions of its operations in Asia and the opening of its own crypto exchanges in Singapore and Canada. In the long term, the company would like to launch a Robinhood-style trading platform for the Chinese market.

Ebang’s growth story is very attractive to institutional investors … fundraising by all industry players is getting busier thanks to the bitcoin bull.

Commented Guo Yi, COO at Univest Securities.

Tesla as example

Although officially cryptocurrency exchanges are banned and mining is frowned upon, everyone in China knows that the government unofficially is a strong supporter of blockchain technology.

Guo Yi continued that the strongest sign thus far was Elon Musk’s approval of Bitcoin investment. Many Asians view Tesla as a highpoint in technology and therefore his seal of approval is quite important. Yi stated:

If (Tesla founder) Elon Musk can endorse bitcoin, what’s wrong with Chinese companies embracing it?

Last week in South Korea, analysis revealed that Musk has even pushed a generation of 40-year-olds to invest in Bitcoin and crypto for the first time.

zoomteam / Depositphotos.com