Even though Cryptocurrency Faced a 2018 Slump, Angel Investor Amassed 10,000 Bitcoins
During an open group Q&A session with tech entrepreneur Wang Feng on WeChat on Thursday, Cai revealed that although he was holding a single bitcoin in January of this year, he moved to increase his portfolio over the first quarter of 2018 amid the bearish market’s lower prices.
Soon after December’s record high around $20,000, the price of bitcoin started falling in January. It touched a low for the year so far below $6,000 in February, before climbing again to over $9,700 at press time. According to Coindelite’s Bitcoin Price Index, Cai’s belongings are now worth around $96 million.
Cai described his reasoning for the investment during the Q&A, saying:
“I only had single digit unit of bitcoin, just for fun in January. But when I got certain that bitcoin and blockchain is the future, I set the goal of holding 10,000 bitcoin. So I started around the end of January to build my [holdings] following the price decline. The more it dropped, the more I bought in and now the mission is complete.”
Born in the 1970s, Cai made his name and first prosperity by funding in domain names during the internet bubble and grew his investment securities over the next decade as an angel investor.
His current venture, Meitu, a famous photo retouching tool in China that alleges to have over 90 million monthly active users went public in Hong Kong in December 2016 with a valuation of $5 billion at the time.
Cai’s revelation makes him one of the few big-name investors in China to have willingly disclosed their bitcoin holdings. It also comes at a time when Meitu is striving to use blockchain technology to decentralize storage of users’ data, according to a white paper published in January.